2018 (8) TMI 1558

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....USTICE AKIL KURESHI) 1. Revenue is in appeal against the judgment of the Income Tax Appellate Tribunal dated 30.01.2018 raising following questions for our consideration: "[A] Whether in the facts and circumstances of the case and law, the Appellate Tribunal is justified in considering the status of the assessee as "Scheduled Bank", even though the name of the assessee bank was not ref....

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....d as a Scheduled Bank and consequently would get the benefit of deduction of bad debt in terms of section 36(1) (viia)(a) of the Income Tax Act, 1961, ('the Act' for short). 3. For the assessment 2007-08, the Assessing Officer refused to treat the respondent bank as a scheduled bank. The undisputable facts emerging from the record however are that there were three Gramin banks. All of w....

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.... The Court dismissed the said appeal making following observations: "5. The learned counsel Shri P.G. Desai for the appellant vehemently contended that the Tribunal committed 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 ....

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....nder : "(vii) As per RBI guidelines dated 16th October, 2000, the investment portfolio of the banks is required to be classified under three categories viz. Held to Maturity (HTM), 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 whic....