ACIT, Mumbai Vs The Bank Of Rajasthan Ltd (Dated: December 22, 2010)
Income tax – Sections 145, 147, 148, Circular No 17 of 2008 – Whether the premium paid in excess of the face value of the investments classified under HTM category can be amortised over the maturity period and is allowable loss - Revenue’s appeal dismissed : MUMBAI ITAT;
The above decision lays down that in the case of banks the premium paid in excess of the face value of investments classified under HTM category, which has been amortised over the period till maturity, is allowable as revenue expenditure since the claim is as per RBI guidelines and the CBDT also has directed to allow such premium.
The above decision lays down that in the case of banks the premium paid in excess of the face value of investments classified under HTM category, which has been amortised over the period till maturity, is allowable as revenue expenditure since the claim is as per RBI guidelines and the CBDT also has directed to allow such premium.
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