TaxTMI 
TaxTMI 
2021 (10) TMI 862
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.... The order of the learned CITCA) is opposed to law and facts of the case. (b) Whether on the facts and circumstances of the cases and in law, CITCA) was right in holding that since no exempt income has been received by the assessee during the year no disallowance/addition can be made u/s 14A rw Rule 8D of Income tax Rules, 1962 ignoring the Board's circular No. 5/2014 ? (c) Whether on the facts and circumstances of the cases and in law, CIT(A) was right in allowing deprecation on investments simply relying on the decision of the Karnataka High Court in the case of Karnataka Bank Limited Vs ACIT (2013) 356 ITR 549 when the issue has not reached finality as the department has not accepted the High Court Order and has fil....
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....nts towards various funds in its P& L account and also failed to claim the deductions in its return of income? (g) For these and other grounds that may be urged upon at the time of hearing, it is prayed that the order of CITCA) in so far as it relates to the above grounds, may be reversed and that of the Assessing Officer may be restored. (h) The appellant craves leave to alter, amend or delete any of the grounds mentioned above and / or add any new grounds on or before the hearing." 2. The first ground is with regard to disallowance u/s. 14A of the Act r.w. Rule 8D of the Income Tax Rules, 1962. The AO gave a finding that the assessee had admitted tax free interest income of Rs. 16,96,744 and dividend income of Rs. 1,0....
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....in Govt. securities characterized as Securities Available For Sale (AFS) and Held for Trade (HFT) and that the depreciation on these investments has been made as per RBI guidelines. As per the Banking Regulation Act, 1949. 'Banking' as defined in the Section 5(b) of the Banking Regulations Act, 1949 is the business of "Accepting deposits of money from the public for the purpose of lending or investment'. Therefore, the activity of the banking includes investments in securities prescribed by the Reserve Bank of India up to 25% of the demand and time liabilities. It is further submitted that as per RBI Master circular No.RBI/2015-16/43 DCBR.BPD (PCB).MC.NoA/16.20.000/2015-16 dt. 1 July 2015, the investment held under Available for....
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.... that the issue is pending for adjudication before the Hon'ble Supreme Court. The stand taken by the Assessing Officer in not considering the judgement of Hon'ble High Court of Karnataka is erroneous as it has been held that not following the decision of Hon'ble Karnataka High Court merely for the reason that the Dept. is in further appeal is contrary to the decision of Hon'ble Supreme Court [DCIT v. MIs. Raghuvir Synthetics Ltd. - 2017 (4) TMI 975) (2017 Taxcorp (DT) 68977 (SC)] which is binding on the revenue authorities to follow the judgment of the jurisdictional court until contrary order is passed by the next superior court. Therefore, the assessee submitted that the addition of Rs. 9,87,000 is to be deleted. 5. The CIT....
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.... to Rs. 257.93 crores as at the end the previous year which includes premium amount of Rs. 82,91,600. The investment includes held for trade amounting to Rs. 77,06,41,450 and held to maturity amounting to Rs. 1 ,80,86,84.410. The amortization of premium claimed includes Rs. 82,91,600 debited to profit and loss account pertaining to the premium amortized for AY 2013-14. Further a sum of Rs. 41,90,874 has been claimed towards 1/5th of the premium pertaining AYs 2011-12, AY 2012-13 and AY 2013-14 aggregating to 3/5th of Rs. 69,84,790. 8. In the case of the assessee, where the deduction under the head amortization of premium was disallowed for the AY 2010-11, the CIT(Appeals) vide order dt. 19.06.2013 held that the assessee is entitled for a....