Court rules in favor of taxpayer, rejects revenue's appeal on amortized premium disallowance.

The High Court upheld the deletion of the addition made by the Assessing Officer on the issue of disallowance of amortized premium, citing a previous decision and finding no question of law arising from the impugned order. The appeal by the revenue was summarily dismissed.

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Issues:
Challenge to order deleting addition on account of amortized premium

Analysis:
The appellant revenue challenged the order passed by the Income Tax Appellate Tribunal, Ahmedabad Bench 'A,' which deleted the addition made by the Assessing Officer on the issue of disallowance of amortized premium amounting to Rs. 2,10,11,715. The assessee filed its return of income for assessment year 2012-13, declaring a total income of Rs. 69,51,17,191. The assessment framed under section 143(3) of the Income Tax Act included the aforementioned addition. The Commissioner (Appeals) deleted the addition based on a previous decision in the assessee's own case for the assessment year 2011-12, supported by a Tribunal decision in another case. The revenue then appealed to the Tribunal, which upheld the deletion of the addition. The High Court noted that the controversy was settled in a previous decision involving similar issues. The High Court cited the decision in the case of Commissioner of Income Tax, Rajkot-II v. Rajkot District Cooperative Bank Ltd., where it was held that amortization of premium paid on acquisition of securities at a rate higher than the face value should be done for the remaining period of maturity. As no contrary instructions of the Central Board of Direct Taxes (CBDT) were presented, the High Court found no question of law arising from the impugned order. Consequently, the appeal was summarily dismissed.

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