2015 (6) TMI 552

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....A KUMAR YADAV, J.M: This appeal has been filed by assessee against the order of Commissioner of Income Tax (Appeal)-I, (short CIT(A)-I) Pune for A.Y. 2009-10 on the following grounds. 1. That the learned Commissioner of Income Tax (Appeal)l has erred in confirming the additions made by the A.O who has disallowed amortization of premium paid on Govt. Securities Rs. 23,13,525/-debited to....

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.... observing as under: "4. We have heard the parties. We find that the issue before us is clearly covered in favour of the assessee by the decision of ITAT Pune Bench in the case of Latur Urban Coop. Bank Ltd. in ITA No. 778 and 792/PN/2011, order dated 31-8-2012. The relevant discussion and finding of the Tribunal on the issue is as under. "13. So far as Ground No. 2 is concerned,....

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.... of UCO Bank Vs. CIT, 240 ITR 355 (SC). In the case of Bank of Baroda (Supra), the issue before their Lordship was whether the assessee was entitled for deduction on account of depreciation in the value of investments. The method of valuation followed by the assessee Bank was to value investments at cost or market value whichever was lower. The assessee had claimed the depreciation to the tune of ....

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....re kept under the head till the maturity, the said Security cannot be treated as a purely investment. Law is well settled that the Securities held by the Bank are in the nature of Stock-in-Trade. We may like to quote here the decision of the Hon'ble High Court of Kerala in the case of CIT Vs. Nedungadi Bank Ltd., 264 ITR 545. In the said case, the Hon'ble High Court has held that the securities he....