https://www.taxtmi.com/highlights?id=94946 ITAT allowed the assessee-bank's claim for deduction of amortization of premium paid on purchase of government securities held under the HTM category. It held that the assessee, engaged in banking business under the Banking Regulation Act, 1949 and Regional Rural Banks Act, 1976, is statutorily required to invest in government securities to maintain SLR and capital adequacy norms prescribed by RBI. The Tribunal treated the premium amortized over the period to maturity as revenue expenditure, following its earlier precedent, and held that such amortization is an allowable deduction in computing taxable income. The Revenue's objections were consequently rejected. en-us Thu, 11 Dec 2025 12:01:33 +0530 Thu, 11 Dec 2025 12:01:32 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=94946 ITAT allowed the assessee-bank's claim for deduction of amortization of premium paid on purchase of government securities held under the HTM category. It held that the assessee, engaged in banking business under the Banking Regulation Act, 1949 and Regional Rural Banks Act, 1976, is statutorily required to invest in government securities to maintain SLR and capital adequacy norms prescribed by RBI. The Tribunal treated the premium amortized over the period to maturity as revenue expenditure, following its earlier precedent, and held that such amortization is an allowable deduction in computing taxable income. The Revenue's objections were consequently rejected. Highlights Income Tax Thu, 11 Dec 2025 12:01:33 +0530 https://www.taxtmi.com/highlights?id=94946