CIT v. Nedungadi

264 ITR 545High Court2003#2931 most cited

What is CIT v. Nedungadi authority for?

Securities held by a bank are considered stock-in-trade, and any notional loss arising from their valuation at the year-end is allowable as a deduction.

40

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2012 to 2026.

Also referred to as

CIT v. Nedungadi Bank · 264 ITR 545 · securities as stock-in-trade · notional loss on securities · allowable deduction · banking · RBI guidelines · valuation of securities

Sections most often in play

Section 14ASection 36(1)(vii)Section 36(1)(viii)Section 143(3)Section 154Section 32(1)Section 36(1)(viia)Section 43B

Issues it is cited on

mercantile system of accountingdisallowance under section 14asection 36section 145revenue expendituresection 154escapement of incomesection 36(1)section 14asection 37section 26section 15

Judgments citing CIT v. Nedungadi

ACIT, New Delhi vs. M/S. Punjab and Sind Bank, New Delhi

In the result, appeals of the revenue are dismissed

ITA 1442/DEL/2015[2012-13]Status: DisposedITAT Delhi09 Jan 2019AY 2012-13

Bench: Shri Prashant Maharishi & Shri K.Narasimha Chary

Section 115Section 14

…uch securities is considered as business loss and likewise really beendepreciation on valuation of such securities, if any, is offered to tax. Assessee placed reliance on the decision of the Hon’ble Kerala High Court in the case of CIT vs. Nedungadi bank Ltd 264 ITR 545 for the principle that the depreciation/loss in the value of investment was allowable expenditure. 5. Ld. Assessing officer formed an opinion that though it is correct that the assessee has valued its securities scrip wise at lower of cost or market price, the fact remains that these investments have not been shown in the books as “stock in trad…

M/S. Punjab National Bank, New Delhi vs. Addl.CIT, New Delhi

In the result, assessee’s appeals, namely, ITA Nos

ITA 2469/DEL/2014[2010-11]Status: DisposedITAT Delhi09 Jan 2019AY 2010-11

Bench: Shri Prashant Maharishi & Shri K.Narasimha Chary

For Appellant: S/Shri K. Sampath & V. Raja Kumar, AdvocateFor Respondent: Smt. Sulekha Verma, CIT,DR
Section 14Section 14A

…ss on account of the amortization of the premium could not be treated as provision for ascertained liability. 23. Ld. CIT(A) considered this issue in the light of the precedent in assessee’s own case and also in the case of CIT vs. Nedungadi bank Ltd (2003) 264 ITR 545 (Kerela), and while following the same, observed that the amortization, which is as good as depreciation, merits the same treatment which is applicable to depreciation and thereby Ld. CIT(A) held the issue in favour of the assessee. 24. It is the submission of Ld. AR that the issue in question has squarely been covered by the orders of a coordin…

DCIT, New Delhi vs. M/S. Punjab National Bank, New Delhi

In the result, assessee’s appeals, namely, ITA Nos

ITA 2966/DEL/2013[2009-10]Status: DisposedITAT Delhi09 Jan 2019AY 2009-10

Bench: Shri Prashant Maharishi & Shri K.Narasimha Chary

For Appellant: S/Shri K. Sampath & V. Raja Kumar, AdvocateFor Respondent: Smt. Sulekha Verma, CIT,DR
Section 14Section 14A

…ss on account of the amortization of the premium could not be treated as provision for ascertained liability. 23. Ld. CIT(A) considered this issue in the light of the precedent in assessee’s own case and also in the case of CIT vs. Nedungadi bank Ltd (2003) 264 ITR 545 (Kerela), and while following the same, observed that the amortization, which is as good as depreciation, merits the same treatment which is applicable to depreciation and thereby Ld. CIT(A) held the issue in favour of the assessee. 24. It is the submission of Ld. AR that the issue in question has squarely been covered by the orders of a coordin…

Punjab National Bank, New Delhi vs. Addl. CIT, New Delhi

In the result, assessee’s appeals, namely, ITA Nos

ITA 2406/DEL/2013[2009-10]Status: DisposedITAT Delhi09 Jan 2019AY 2009-10

Bench: Shri Prashant Maharishi & Shri K.Narasimha Chary

For Appellant: S/Shri K. Sampath & V. Raja Kumar, AdvocateFor Respondent: Smt. Sulekha Verma, CIT,DR
Section 14Section 14A

…ss on account of the amortization of the premium could not be treated as provision for ascertained liability. 23. Ld. CIT(A) considered this issue in the light of the precedent in assessee’s own case and also in the case of CIT vs. Nedungadi bank Ltd (2003) 264 ITR 545 (Kerela), and while following the same, observed that the amortization, which is as good as depreciation, merits the same treatment which is applicable to depreciation and thereby Ld. CIT(A) held the issue in favour of the assessee. 24. It is the submission of Ld. AR that the issue in question has squarely been covered by the orders of a coordin…

Punjab National Bank, New Delhi vs. Addl. CIT, New Delhi

In the result, assessee’s appeals, namely, ITA Nos

ITA 4722/DEL/2012[2008-09]Status: DisposedITAT Delhi09 Jan 2019AY 2008-09

Bench: Shri Prashant Maharishi & Shri K.Narasimha Chary

For Appellant: S/Shri K. Sampath & V. Raja Kumar, AdvocateFor Respondent: Smt. Sulekha Verma, CIT,DR
Section 14Section 14A

…ss on account of the amortization of the premium could not be treated as provision for ascertained liability. 23. Ld. CIT(A) considered this issue in the light of the precedent in assessee’s own case and also in the case of CIT vs. Nedungadi bank Ltd (2003) 264 ITR 545 (Kerela), and while following the same, observed that the amortization, which is as good as depreciation, merits the same treatment which is applicable to depreciation and thereby Ld. CIT(A) held the issue in favour of the assessee. 24. It is the submission of Ld. AR that the issue in question has squarely been covered by the orders of a coordin…

ACIT, New Delhi vs. M/S. Punjab National Bank, New Delhi

In the result, assessee’s appeals, namely, ITA Nos

ITA 4718/DEL/2012[2008-09]Status: DisposedITAT Delhi09 Jan 2019AY 2008-09

Bench: Shri Prashant Maharishi & Shri K.Narasimha Chary

For Appellant: S/Shri K. Sampath & V. Raja Kumar, AdvocateFor Respondent: Smt. Sulekha Verma, CIT,DR
Section 14Section 14A

…ss on account of the amortization of the premium could not be treated as provision for ascertained liability. 23. Ld. CIT(A) considered this issue in the light of the precedent in assessee’s own case and also in the case of CIT vs. Nedungadi bank Ltd (2003) 264 ITR 545 (Kerela), and while following the same, observed that the amortization, which is as good as depreciation, merits the same treatment which is applicable to depreciation and thereby Ld. CIT(A) held the issue in favour of the assessee. 24. It is the submission of Ld. AR that the issue in question has squarely been covered by the orders of a coordin…

Punjab National Bank, New Delhi vs. Addl. CIT, New Delhi

In the result, assessee’s appeals, namely, ITA Nos

ITA 1788/DEL/2012[2006-07]Status: DisposedITAT Delhi09 Jan 2019AY 2006-07

Bench: Shri Prashant Maharishi & Shri K.Narasimha Chary

For Appellant: S/Shri K. Sampath & V. Raja Kumar, AdvocateFor Respondent: Smt. Sulekha Verma, CIT,DR
Section 14Section 14A

…ss on account of the amortization of the premium could not be treated as provision for ascertained liability. 23. Ld. CIT(A) considered this issue in the light of the precedent in assessee’s own case and also in the case of CIT vs. Nedungadi bank Ltd (2003) 264 ITR 545 (Kerela), and while following the same, observed that the amortization, which is as good as depreciation, merits the same treatment which is applicable to depreciation and thereby Ld. CIT(A) held the issue in favour of the assessee. 24. It is the submission of Ld. AR that the issue in question has squarely been covered by the orders of a coordin…

Punjab National Bank, New Delhi vs. ACIT, New Delhi

In the result, assessee’s appeals, namely, ITA Nos

ITA 4253/DEL/2011[2006-07]Status: DisposedITAT Delhi09 Jan 2019AY 2006-07

Bench: Shri Prashant Maharishi & Shri K.Narasimha Chary

For Appellant: S/Shri K. Sampath & V. Raja Kumar, AdvocateFor Respondent: Smt. Sulekha Verma, CIT,DR
Section 14Section 14A

…ss on account of the amortization of the premium could not be treated as provision for ascertained liability. 23. Ld. CIT(A) considered this issue in the light of the precedent in assessee’s own case and also in the case of CIT vs. Nedungadi bank Ltd (2003) 264 ITR 545 (Kerela), and while following the same, observed that the amortization, which is as good as depreciation, merits the same treatment which is applicable to depreciation and thereby Ld. CIT(A) held the issue in favour of the assessee. 24. It is the submission of Ld. AR that the issue in question has squarely been covered by the orders of a coordin…

ACIT, New Delhi vs. Punjab National Bank, New Delhi

In the result, assessee’s appeals, namely, ITA Nos

ITA 2469/DEL/2011[2007-08]Status: DisposedITAT Delhi09 Jan 2019AY 2007-08

Bench: Shri Prashant Maharishi & Shri K.Narasimha Chary

For Appellant: S/Shri K. Sampath & V. Raja Kumar, AdvocateFor Respondent: Smt. Sulekha Verma, CIT,DR
Section 14Section 14A

…ss on account of the amortization of the premium could not be treated as provision for ascertained liability. 23. Ld. CIT(A) considered this issue in the light of the precedent in assessee’s own case and also in the case of CIT vs. Nedungadi bank Ltd (2003) 264 ITR 545 (Kerela), and while following the same, observed that the amortization, which is as good as depreciation, merits the same treatment which is applicable to depreciation and thereby Ld. CIT(A) held the issue in favour of the assessee. 24. It is the submission of Ld. AR that the issue in question has squarely been covered by the orders of a coordin…

Punjab National Bank, New Delhi vs. ACIT, New Delhi

In the result, assessee’s appeals, namely, ITA Nos

ITA 2236/DEL/2011[2007-08]Status: DisposedITAT Delhi09 Jan 2019AY 2007-08

Bench: Shri Prashant Maharishi & Shri K.Narasimha Chary

For Appellant: S/Shri K. Sampath & V. Raja Kumar, AdvocateFor Respondent: Smt. Sulekha Verma, CIT,DR
Section 14Section 14A

…ss on account of the amortization of the premium could not be treated as provision for ascertained liability. 23. Ld. CIT(A) considered this issue in the light of the precedent in assessee’s own case and also in the case of CIT vs. Nedungadi bank Ltd (2003) 264 ITR 545 (Kerela), and while following the same, observed that the amortization, which is as good as depreciation, merits the same treatment which is applicable to depreciation and thereby Ld. CIT(A) held the issue in favour of the assessee. 24. It is the submission of Ld. AR that the issue in question has squarely been covered by the orders of a coordin…

The ACIT, Thrissur vs. M/S.the South Indian Bank Ltd, Trichur

In the result, the appeals filed by the Revenue stand dismissed

ITA 504/COCH/2016[2011-12]Status: DisposedITAT Cochin01 Dec 2017AY 2011-12

Bench: Shri Abraham P.George, Am & Shri George George K, Jm

For Appellant: Sri. A.Dhanaraj, Sr.DRFor Respondent: Sri. V.P.Narayanan
Section 143(3)

…503 & 504/Coch/2016. 6 The South Indian Bank Limited. Tribunal in assessee’s own case for assessment years 2005- 2006 to 2007-2008 (supra) by following the judgment of the Hon’ble jurisdictional High Court in the case of CIT v. Nedungadi Bank Ltd. Reported in 264 ITR 545 (Kar) had held that the depreciation on investment which are `Held to Maturity’ and forming part of stock-in-trade is entitled to claim the same as a deduction. The CIT(A) had followed the orders of the Tribunal in assessee’s own case, for Asst.Years 2005-2006 to 2007-2008 (supra). No judgment of the Hon’ble High Court has been brought to our not…

The ACIT, Trichur vs. M/S. the South Indian Bank Ltd, Trichur

In the result, the appeals filed by the Revenue stand dismissed

ITA 503/COCH/2016[2010-11]Status: DisposedITAT Cochin01 Dec 2017AY 2010-11

Bench: Shri Abraham P.George, Am & Shri George George K, Jm

For Appellant: Sri. A.Dhanaraj, Sr.DRFor Respondent: Sri. V.P.Narayanan
Section 143(3)

…503 & 504/Coch/2016. 6 The South Indian Bank Limited. Tribunal in assessee’s own case for assessment years 2005- 2006 to 2007-2008 (supra) by following the judgment of the Hon’ble jurisdictional High Court in the case of CIT v. Nedungadi Bank Ltd. Reported in 264 ITR 545 (Kar) had held that the depreciation on investment which are `Held to Maturity’ and forming part of stock-in-trade is entitled to claim the same as a deduction. The CIT(A) had followed the orders of the Tribunal in assessee’s own case, for Asst.Years 2005-2006 to 2007-2008 (supra). No judgment of the Hon’ble High Court has been brought to our not…

ITO 16(2)(4), Mumbai vs. Surya Gems, Mumbai

The appeal of the Revenue is dismissed

ITA 292/MUM/2014[2009-10]Status: DisposedITAT Mumbai08 Mar 2017AY 2009-10

Bench: Shri Joginder Singh & Shri N.K. Pradhanassessment Year: 2009-10 Income Tax Officer-16(2)(4), M/S Surya Gems, बनाम/ 02Nd Floor, Matru Mandir, Flat No.4, 02Nd Floor, Tardeo Road, Bhaveshwar Sgar Patel Vs. Mumbai-400007 Compound 20 Napean Sea Road, Mumbai-400020 (याजस्व /Revenue) (यनधाारयती /Assessee) P.A. No. Aakfs6513Q याजस्व की ओर से / Revenue By Shri B.S. Bist-Dr यनधाारयती की ओर से / Assessee By None ुनवाई की तायीख / Date Of Hearing : 14/02/2017 आदेश की तायीख /Date Of Order: 08/03/2017

…Tokyo, 13 ITD 32 (Cal) – Proceeded on the assumption that foreign exchange contract constitute stock-in- trade which is not correct. iii) State Bank of Mysore, 114 ITR 704 (Kar) – delivered in respect of foreign currency held by bank. iv) Nedungadi Bank ltd., 264 ITR 545 (Ker)- delivered in the context whether Government securities can be treated as stock- in-trade or not. v) Mashreque bank, 18 SOT 233 (Mum). This case proceeded on wrong assumption that forward foreign exchange contracts constitute stock- intrade. vi) United Commercial Bank, 240 ITR 355 (SC). The question was whether government securities held by…

ACIT, New Delhi vs. M/S. Ge Capital Transportation Financial Services Ltd., New Delhi

In the result, appeal filed by Revenue is dismissed and that of the assessee is partly allowed

ITA 767/DEL/2011[2002-03]Status: DisposedITAT Delhi27 Jul 2016AY 2002-03

Bench: Shri G. D. Agrawal, Hon’Ble & Smt. Beena A. Pillai

For Appellant: Shri Tushar Jarwal, AdvFor Respondent: Shri T Vasanthan, Sr. DR
Section 143(1)Section 143(3)

…nts, therefore, are made in the ordinary course of the business of the Appellant. 12.5 Reliance has been placed on the following judgements : i) ITO Vs J & K Bank Ltd. 95 ITD 141 (2005); ii) Josna Bank Lt. Vs CIT 97 ITR 72; iii) CIT Vs Nedungadi Bank Limited, 264 ITR 545; iv) Bank of Cochin Vs CIT 94 ITSR 93 (Ker.); v) Patnaik & Co. Ltd. Vs CIT Orissa 161 ITR 365 (S.C.) vi) State Bank of Patiala Vs ITO 8 ITD 396 (T Chd.) 12.6 Ld. A.R. submitted that Co-ordinate Bench of this Tribunal in assessee’s own case for Assessment Year 2001-02 in I.T.A.No. 2190/Del/2006 and 2069/Del/2006, has allowed the claim of the asse…

Ge Capital Services India, New Delhi vs. DCIT, New Delhi

In the result, appeal filed by Revenue is dismissed and that of the assessee is partly allowed

ITA 514/DEL/2011[2002-03]Status: DisposedITAT Delhi27 Jul 2016AY 2002-03

Bench: Shri G. D. Agrawal, Hon’Ble & Smt. Beena A. Pillai

For Appellant: Shri Tushar Jarwal, AdvFor Respondent: Shri T Vasanthan, Sr. DR
Section 143(1)Section 143(3)

…nts, therefore, are made in the ordinary course of the business of the Appellant. 12.5 Reliance has been placed on the following judgements : i) ITO Vs J & K Bank Ltd. 95 ITD 141 (2005); ii) Josna Bank Lt. Vs CIT 97 ITR 72; iii) CIT Vs Nedungadi Bank Limited, 264 ITR 545; iv) Bank of Cochin Vs CIT 94 ITSR 93 (Ker.); v) Patnaik & Co. Ltd. Vs CIT Orissa 161 ITR 365 (S.C.) vi) State Bank of Patiala Vs ITO 8 ITD 396 (T Chd.) 12.6 Ld. A.R. submitted that Co-ordinate Bench of this Tribunal in assessee’s own case for Assessment Year 2001-02 in I.T.A.No. 2190/Del/2006 and 2069/Del/2006, has allowed the claim of the asse…

The Commissioner of income Tax-II vs. M/s.Ideal Industrial Explosives Ltd

ITTA/100/2010HC Telangana01 Mar 2016

Bench: RAMESH RANGANATHAN,M.SATYANARAYANA MURTHY

Inventurus Knowledge Services P.Ltd, Navi Mumbai vs. ITO 5(2)(1), Mumbai

In the result appeal of the assessee company is partly allowed

ITA 5922/MUM/2013[2009-10]Status: DisposedITAT Mumbai21 Oct 2015AY 2009-10

Bench: Shri Joginder Singh & Shri Ramit Kocharassessment Year: - 2009-10 Inventurus Knowledge Services V. Income Tax Officer Pvt. Ltd. 5(2)(1), C/O. Seren Properties Pvt. Ltd. 525, Aaykar Bhavan, (Sez), Unit No. 204, Build No. 5, M.K. Road, Mindspace Airoli Camp, Plot No. Mumbai - 400 020. 3, Gat No. 95, Kalwa Trans, Thane Creek, Midc Industrial Area, Thane Belapur Road, Airoli, Navi Mumbai – 400 708. Pan/Gir No. Aabck4601P

…tion that foreign exchange contract constitute stock-in-trade which is not correct. (iii) State bank of Mysore, 114 ITR 704 (Kar) - delivered in respect of foreign currency held by bank. Page 30 of 44 31 Assessment year: - 2009-10 (iv) Nedungadi bank ltd., 264 ITR 545 (Ker)- delivered in the context whether Government securities can be treated as stock-in-trade or not. (v) Mashreque bank, 18 SOT 233 (Mum). This case proceeded on wrong assumption that forward foreign exchange contracts constitute stock- in-trade. (vi) United Commercial Bank, 240 ITR 355 (SC). The question was whether government securities held…

Punjab & Sind Bank vs. Commissioner of Income Tax V& Anr

The appeals are disposed of in the aforesaid terms with no order as to

ITA/660/2009HC Delhi12 Sept 2012

Bench: CASES PERTAINING TO SPL.DIVISION BENCHES

Section 143(3)Section 154

…so, the Committee on Dispute (COD) did not even allow the revenue to challenge these very findings recorded in respect of Assessment Year 2005-06. 8. Learned counsel also relied upon the judgment of Commission of Income Tax v. The Nedungadi Bank Ltd., 264 ITR 545 (Kerala) in which the High Court, after following various judgments of the Supreme Court, held that securities held by the bank constituted their „stock in trade‟ and consequently the notional loss claimed by the assessee bank on valuation of such securities at the close of the year is allowable deduction. Learned counsel also submitted tha…

Punjab & Sind Bank vs. Commissioner of Income Tax V & Anr

The appeals are disposed of in the aforesaid terms with no order as to

ITA - 634 / 2009HC Delhi12 Sept 2012
Section 143(3)Section 154

…so, the Committee on Dispute (COD) did not even allow the revenue to challenge these very findings recorded in respect of Assessment Year 2005-06. 8. Learned counsel also relied upon the judgment of Commission of Income Tax v. The Nedungadi Bank Ltd., 264 ITR 545 (Kerala) in which the High Court, after following various judgments of the Supreme Court, held that securities held by the bank constituted their „stock in trade‟ and consequently the notional loss claimed by the assessee bank on valuation of such securities at the close of the year is allowable deduction. Learned counsel also submitted tha…

Punjab and Sind Bank

The appeals are disposed of in the aforesaid terms with no order as to

ITA/634/2009HC Delhi12 Sept 2012
Section 143(3)Section 154

…so, the Committee on Dispute (COD) did not even allow the revenue to challenge these very findings recorded in respect of Assessment Year 2005-06. 8. Learned counsel also relied upon the judgment of Commission of Income Tax v. The Nedungadi Bank Ltd., 264 ITR 545 (Kerala) in which the High Court, after following various judgments of the Supreme Court, held that securities held by the bank constituted their „stock in trade‟ and consequently the notional loss claimed by the assessee bank on valuation of such securities at the close of the year is allowable deduction. Learned counsel also submitted tha…