The ACIT,GNR Circle, Gandhinagar V. Dena Gujarat Gramin Bank, Gandhinagar

ITA 2059/AHD/2011

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 89580 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 9 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-06-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 13-05-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 19-08-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DINESH SINGH
• Assessee Lawyers: SHRIMUKESH M PATEL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD A BENCH AHMEDABAD BEFORE SHRI SHAILENDRA KUMAR YADAV, JUDICIAL MEMBER, AND SHRI N. S. SAINI, ACCOUNTANT MEMBER. ITA. NO. 2059/AHD/2011 (ASSESSMENT YEAR:2008-09) ASSTT. COMMISSIONER OF INCOME TAX, GANDHINAGAR APPELLANT VS. DENA GUJARAT GRAMIN BANK, JILLAPANCHAYATBHAVAN, SECTOR-17, GANDHINAGAR RESPONDENT PAN: AAAJD0596Q /BY APPELLANT : SHRI DINESH SINGH, SR. D.R. /BY RESPONDENT: SHRIMUKESH M. PATEL, A.R. /DATE OF HEARING : 13.05.2015 /DATE OF PRONOUNCEMENT :05.06.2015 ORDER PER SHAILENDRA KUMAR YADAV, J.M: THIS APPEAL HAS BEEN FILED BY REVENUEAGAINST THE OR DER OFCIT(A), GANDHINAGAR, DATED 27.05.2011 FOR THE ASS ESSMENT YEAR 2008-09 ON FOLLOWING GROUND: 1. THE LEARNED CIT(APPEALS) HAS ERRED IN LAW AND O N FACTS IN DELETING THE DISALLOWANCE OF RS.1,30,19,855/- MA DE ITA NO. 2059/AHD/11 A.Y. 08-09 (ACIT VS. DENA GUJARAT GRAMIN BANK) PAGE 2 ON ACCOUNT OF EXPENSES BEING PREMIUM PAID ON SLR (STATUTORY LIQUIDITY RATIO) INVESTMENTS. 2. ASSESSING OFFICER DISALLOWED ASSESSEES CLAIM OF RS.1,30,19,855/- FOR DEDUCTION IN RESPECT OF AMORTI ZATION OF PREMIUM OF INVESTMENTS, TREATING THE SAME AS CAPITA L IN NATURE. 3. MATTER WAS CARRIED BEFORE THE FIRST APPELLATE AU THORITY, WHEREIN VARIOUS CONTENTIONS WERE RAISED ON BEHALF O F ASSESSEE AND HAVING CONSIDERED THE SAME CIT(A) HAS ALLOWED T HE SAME, WHICH HAS BEEN OPPOSED BEFORE US ON BEHALF OF REVEN UE. LEARNED DEPARTMENTAL REPRESENTATIVE HAS SUPPORTED THE ORDER OF ASSESSING OFFICER. ON OTHER HAND, LEARNED AUTHO RIZED REPRESENTATIVE SUPPORTED THE ORDER OF CIT(A). 4. AFTER GOING THROUGH RIVAL SUBMISSIONS AND MATERI AL ON RECORD, WE ARE OF THE VIEW THAT AMORTIZATION OF PRE MIUM IS ALLOWABLE IN ACCOUNTING PRACTICE. AS PER RBIS GUI DELINES, AMORTIZATION OF PREMIUM IN CASE OF ASSETS TREATED A S HTM (HELD TO MATURITY) (INVESTMENTS) IS TO BE AMORTIZED DIVID ED EQUALLY OVER THE PERIOD WHICH IS REMAINING FOR THEIR MATURI TY. SAME HAS BEEN DONE BY ASSESSE. AMORTIZATION OF EXPENSES HAS BEEN RECOGNIZED IN SIMILAR CIRCUMSTANCES IN CASE OF PREM IUM OF DEBENTURES, WHICH WAS ALSO HELD AS INVESTMENTS IN D IFFERENT JUDGMENTS INCLUDING THAT OF HONBLE SUPREME COURT I N CASE OF MADRAS INDUSTRIAL INVESTMENT CORP. LTD. VS. CIT(A) 225 ITR 802 (SC) RELIED BY ASSESSE. IN VIEW OF THIS, CIT(A ) ALLOWED THE ITA NO. 2059/AHD/11 A.Y. 08-09 (ACIT VS. DENA GUJARAT GRAMIN BANK) PAGE 3 CLAIM OF ASSESSE. THE ORDER OF CIT(A) IS ALSO SUPP ORTED BY THE DECISION OF ITAT, PUNE B BENCH IN ITA NO. 712/PN/ 2013 FOR A.Y.2009-10 IN CASE OF THE AHMEDNAGAR MERCHANTS CO- OP BANK LTD. VS. ACIT. IN VIEW OF ABOVE DECISION, WE ARE NOT INCLINED TO INTERFERE IN THE FINDING OF CIT(A) WHO HAS DELETED THE DISALLOWANCE OF RS.1,30,19,855/- MADE ON ACCOUNT OF EXPENSES BEING PREMIUM PAID ON SLR (STATUTORY LIQUIDITY RATI O) INVESTMENTS. SAME IS UPHELD. 5. IN RESULT, REVENUES APPEAL IS DISMISSED. PRONOUNCED IN THE OPEN COURT ON THIS THE 5 TH DAY OF JUNE, 2015. SD/- SD/- (N. S. SAINI) (SHAILENDRA KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBE R AHMEDABAD: DATED 05/06/2015 S.K.SINHA / COPY OF ORDER FORWARDED TO:- / REVENUE !# / ASSESSEE $ %&%'( ) / CONCERNED CIT * )+ / CIT (A) ,-./00'(1 '( 123#&# / DR, ITAT, AHMEDABAD 4/5678 / GUARD FILE. BY ORDER / #9 1 :; 2% '( 123#&#< STRENGTHEN PREPARATION & DELIVERY OF ORDERS IN THE ITAT 1) DATE OF TAKING DICTATION 13.05.2015 2) DIRECT DICTATION BY MEMBER STRAIGHT ON COMPUTER/LAPTOP/DRAGON DICTATE XXX ITA NO. 2059/AHD/11 A.Y. 08-09 (ACIT VS. DENA GUJARAT GRAMIN BANK) PAGE 4 3) DATE OF TYPING & DRAFT ORDER PLACE BEFORE MEMBER 14.05.2015 4) DATE OF CORRECTION 5) DATE OF FURTHER CORRECTION 6) DATE OF INITIAL SIGN BY MEMBERS 7) ORDER UPLOADED ON 8) ORIGINAL DICTATION PAD HAS BEEN ENCLOSED IN THIS FILE 9) FINAL ORDER AND 2 ND COPY SEND TO BENCH CLERK ON