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| The Tax Publishers2020 TaxPub(DT) 0412 (Guj-HC) INCOME TAX ACT, 1961
Section 37(1)
As decided in Rajkot District Co-op. Bank Ltd. (2014) 222 taxmann 240 (Gujarat) : 2014 TaxPub(DT) 1816 (Guj-HC), CBDT Circular dated 26-11-2008 provides instructions which clearly provide for amortisation of premium paid on acquisition of securities when the same were acquired at the rate higher than the face value. Such amortisation would have to be for the remaining period of maturity. Thus, no substantial question arose.
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Business expenditure - Disallowance of amortized premium - Allowability -
Issue arose under consideration as to whether Tribunal was justified in deleting the addition made by the AO on the issue of disallowance of Amortized Premium. Held: As decided in Rajkot District Co-op. Bank Ltd. (2014) 222 taxmann 240 (Gujarat) : 2014 TaxPub(DT) 1816 (Guj-HC), CBDT Circular dated 26-11-2008 provides instructions which clearly provide for amortisation of premium paid on acquisition of securities when the same were acquired at the rate higher than the face value. Such amortisation would have to be for the remaining period of maturity. Though contended, no contrary instructions of CBDT are brought to our notice. No question of law, therefore, arose.
REFERRED : CIT v. Rajkot Dist. Co-op. Bank Ltd. & Co. (2014) 222 taxmann 240 (Gujarat) : 2014 TaxPub(DT) 1816 (Guj-HC) Dy. CIT v. Kalupur Commercial Co-op. Bank Ltd. [I.T.A. No.1864/Ahd/2017, dt. 186-2019]
FAVOUR : In assessee's favour
A.Y. :
IN THE GUJARAT HIGH COURT
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