2014 (3) TMI 110

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..... Tushar P. Hemani, Advocate ORDER (Per : Honourable Mr. Justice Akil Kureshi) 1. Revenue is in appeal against the judgment of the Income tax Appellate Tribunal, Rajkot Bench, Rajkot (hereinafter referred to as 'the Tribunal') dated August 31, 2012, raising the following questions for our consideration : "(i) Whether in the facts and circumstances of the case and in law, the Ap....

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....ty in order to maintain Statutory Liquidity Ratio (SLR). In certain cases, the acquisition of such securities is at a value higher than the face value of the security itself. The respondentassessee claimed such premium so paid in acquiring the securities as a loss amortised over the entire period of security. 3. The Revenue stoutly opposed the claim. The Assessing Officer as well as CIT(Appeals....

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....mmitted serious error in overruling the decision of the CIT (Appeals), who had given detailed reasons. He submitted that the investment was in the nature of capital investment in the hands of the assessee as held by the CIT (Appeals). The CBDT Circular dated November 26, 2008 would not apply. There were further instructions which would govern the situation. 6. On the other hand, the learned cou....

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...., Held for Trading (HFT) and Available for Sale (AFS). Investments classified under HTM category need not be marked to market and are carried at acquisition cost unless these are more than the face value, in which case the premium should be amortised over the period remaining to maturity. In the case of HFT and AFT securities forming stockintrade of the bank, the depreciation/ appreciation is to b....