TaxTMI 
TaxTMI 
2015 (1) TMI 1270
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....on of premium paid on Government Securities which fall in the category of held to maturity and overlooking the CBDT Circular No. 17 of 2008 dated 26/1 1/2008. (The appellant actually claimed Rs. 35,28,509/- on this account. The Assessing Officer erroneously however disallowed Rs. 25,93,929/-, the same amount was challenged in ground of appeal before CIT(A) and he too confirmed the disallowance of the same amount. The correct amount to be considered is Rs. 35,28,509/-). 2.1 Facts of the case, in brief, are that the assessee, Laxmi Cooperative Ltd., is a Cooperative Society registered under the Cooperative Societies Act with license from RBI to carry on the business of banking. The assessee filed its return of income on 05- 10-2010 declari....
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....5,28,509/- on this account. However, the AO has erroneously disallowed an amount of Rs. 25,93,929/- and the CIT(A) also has erroneously confirmed the same. Referring to the decision of the Hon'ble Bombay High Court in the case of CIT Vs. HDFC Bank Ltd. (copy filed) he submitted that the issue stands squarely decided in favour of the assessee where the decision of the Tribunal holding that assessee is entitled for deduction with respect to the diminution in value of the investment and amortization of premium on investment 'Held to Maturity' has been upheld and the appeal filed by the Revenue has been dismissed. Referring to the decision of the Pune Bench of the Tribunal in the case of Bhavani Urban Co-op Bank Ltd. vide ITA No.610/PN/2011 ord....
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....es thereby ignoring the decision of the Supreme Court in the case of Southern Technologies Vs. CIT (320 ITR 577)?" 6.1 We find the Hon'ble High Court dismissed the appeal filed by the Revenue on this issue by observing as under : "7. As far as question (C) is concerned, we find that an identical question of law was framed and answered in favour of the Assessee by this Court in its judgement dated 04th July, 2014 in Income Tax Appellate No. 1079 of 2012, Commissioner of Income Tax-2 Vs. M/s. Lord Krishna Bank Ltd., (now merged with HDFC Bank Ltd., ). Mr. Suresh Kumar fairly stated that question (C) reproduced above is covered by the said order. In view thereof, we are of the view that even question (C) does not raise any substantial quest....