INCOME TAX ACT, 1961

Section 28

Business loss - Allowability - Loss on revaluation of investment held in HTM (Held-to-Maturity) category -

Assessee-bank claimed loss on revaluation of investment amounting on account of amortization of premium paid at the time of purchase of securities under HTM (Held-to-Maturity) category. AO disallowed the same on allegation that loss on account of amortization of premium could not be treated as provision for ascertained liability. Held: Issue was fully covered by earlier orders right from assessment years 2001-02 to 2012-13 in assessee's own case. CIT(A) only followed principle laid down by Apex Court in case of UCO Bank, 1999 TaxPub(DT) 1437 (SC). In light of aforesaid binding decision of Apex Court, there was no infirmity in order of CIT(A).

Followed:Punjab National Bank v. ACIT 2019 TaxPub(DT) 1677 (Del-Trib) Punjab National Bank v. Addl. CIT 2019 TaxPub(DT) 1396 (Del-Trib) United Commercial Bank v. CIT (1999) 240 ITR 355 (SC): 1999 TaxPub(DT) 1437 (SC)

REFERRED : Godrej & Boyce Manufacturing Company Ltd. v. Dy. CIT & Anr. (2017) 81 taxmann.com 111 (SC) : 2017 TaxPub(DT) 0968 (SC) Electronics Corporation of India Ltd. v. Union of India & Ors. (Civil appeal No. 1883 of 2011 arising out of SLP of 2009 (SC) : 2011 TaxPub(EX) 348 (SC) M/s. Southern Technologies Ltd. v. Jt. CIT (2010) 328 ITR 577 (SC) : (2010) 187 Taxman 346 (SC) : 2010 TaxPub(DT) 1302 (SC) Keshavji Ravji and Co. v. CIT (1990) 183 ITR 1 (SC) : 1990 TaxPub(DT) 0934 (SC) H.H. Maharajadhiraja Madhav Rao Jiwaji Raoscindia Bahadur v. UOI 1971 SCC (1) 85 Ahmed GH Ariff & Ors. v. CWT (1970) 76 ITR 471 (SC) : 1970 TaxPub(DT) 0178 (SC) Punjab Tractors Ltd. v. CIT & Anr. (2017) 78 taxmann.com 65 (P&H) : 2017 TaxPub(DT) 0420 (P&H-HC) Indiabulls Financial Services Ltd. v. Dy. CIT (2016) 76 Taxmann.com 268 (Del) : 2016 TaxPub(DT) 5087 (Del-HC) CCI Ltd. v. Jt. CIT (2012) 81 CCH 001 (Kar) : 2012 TaxPub(DT) 1786 (Karn-HC) CIT v. M/s. Hero Cycles Ltd. (2010) 323 ITR 528 (P&H) : 2010 TaxPub(DT) 0960 (P&H-HC) CIT v. Reliance Utilities & Power Ltd. (2009) 313 ITR 340 (Bom) : 2009 TaxPub(DT) 1275 (Bom-HC) CIT v. Bank of Baroda (2003) 262 ITR 334 (Bom.) : 2003 TaxPub(DT) 1105 (Bom-HC) CIT v. Lakshmi Vilas Bank Ltd. (2003) 264 ITR 662 (Mad.) : 2003 TaxPub(DT) 0873 (Mad-HC) Dy. CIT v. M/s. India Advantage Securities Ltd. (ITA No. 6711 (Mum) 2011) (Trib Mumbai ITAT) : 2013 TaxPub(DT) 2301 (Mum-Trib) Avshesh Mercantile (P.) Ltd. & Ors. v. Dy. CIT (ITA No. 208/Mum/2009, dated 13-6-2012) : 2012 TaxPub(DT) 2710 (Mum-Trib) Punjab National Bank v. Addl. CIT 2012 TaxPub(DT) 2570 (Del-Trib) M/s. Jindal Photo Ltd. v. Dy. CIT [ITA No. (814/Del/2011) for the assessment year 2008-09, dated 23-9-2011] The Catholic Syrian Bank Ltd. v. Addl. CIT (ITA 66/Coch/09, dated 11-2-2011 for the assessment year 2005-06) Cheminvest Ltd. v. ITO (2009) 317 ITR (A.T.) 0086 (Del) : 2009 TaxPub(DT) 1964 (Del-Trib) Ranbaxy Laboratories Ltd. v. Addl. CIT (2009) 124 TTJ (Delhi) 771 : 2009 TaxPub(DT) 1797 (Del-Trib) State Bank of Mysore v. Dy. CIT [ITA No. 647/Bang/2008] : 2009 TaxPub(DT) 1764 (Bang-Trib) Corporation Bank v. ACIT [ITA No. 112/Bang/2008, dt. 3-12-2008]

FAVOUR : In assessee's favour

A.Y. : 2013-14

INCOME TAX ACT, 1961

Section 28

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