TaxTMI 
TaxTMI 
TaxTMI 
2017 (10) TMI 477
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....r afresh taking into account the observations made in the said order. 2. Brief facts leading to the present appeal are that the assessee a Co-operative Bank engaged in the business of banking, filed its return of income for the A.Y. 2010-11 declaring the total income of Rs. 4,65,17,921/-. The assessment was completed u/s 143 (3) of the Act accepting the returned income. 3. Later on the Ld. CIT noticed that the assessee had debited an amount of Rs. 4,68,65,000/- on account of loss on shifting of securities from the category 'Available for Sale' to the category 'Held to Maturity'. The Ld. CIT accordingly issued show cause notice u/s 263 of the Act observing that the loss has arisen to the assessee from re-categorization of securities is not....
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....issioner of Income-tax u/s 263 of the Income-tax Act, 1961 is erroneous and bad in law. 1:3 The Appellant submits that the impugned Order passed u/s 263 of the Income Tax Act, 1961 by the Commissioner of Income-tax be struck down. Without prejudice to the aforesaid: 2:0 Re: Treating the loss of Rs. 4,68,65,000/- as a notional loss. 2:1 The Commissioner of Income-tax has erred in holding that the loss of Rs. 4,68,65,000/- debited by the Appellant to its Profit and Loss Account for the year is a notional loss which cannot be allowed and in directing the Assessing Officer to redo the assessment afresh. 2:2 The Appellant submits that considering the facts and circumstances of its case and the law prevailing on the subject the loss....
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....bited to the profit & loss account a sum of Rs. 87.11 lacs as a loss on account of transfer of securities from category 'Available for Sale' to 'Held to Maturity' which was allowed by the Assessing Officer. The Ld. CIT set aside the assessment order invoking jurisdiction u/s 263 of the Act holding that the allowance of such a notional loss was erroneous and prejudicial to the interest of the revenue. The assessee challenged the said order before the ITAT, Mumbai Bench. The co-ordinate Bench of ITAT set aside the revisional order holding that the claim of the assessee for the loss on transfer of securities from the category 'Available for Sale to 'Held to Maturity' was an allowable deduction. 8. The Department challenged the order passed by....
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....ties from the category "Available for Sale" to "Held to Maturity" was an allowable deduction, and therefore set aside the order passed by the Appellant under section 263 of the Act....." "7. After perusing the order passed by the Appellant dated 23rd March 2009 and the impugned order passed by the ITAT, we find that the ITAT was fully justified in setting aside the order of the Appellant dated 23rd March 2009 and allowing the deduction of Rs. 87.11 lakhs to the Assessee. In this regard, the reliance placed by Mr. Mistry, the learned senior Counsel appearing on behalf of the Respondent-Assessee on the judgment of this Court in the case of Bank of Baroda (supra) is well founded....." "11. We therefore find that the issue raised in this ....