IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE V.K.MOHANAN MONDAY, THE 7TH SEPTEMBER 2009 / 16TH BHADRA 1931 ITA.No. 448 of 2009() --------------------- ITA.242/COCH/2004 of I.T.A.TRIBUNAL,COCHIN BENCH .................... APPELLANT ----------------------------- THE COMMISSIONER OF INCOME TAX, TRICHUR. BY ADV. SRI.P.K.R.MENON,SR.COUNSEL, GOI(TAXES) SRI.JOSE JOSEPH, SC, FOR INCOME TAX RESPONDENT(S): --------------- THE DHANALAKSHMI BANK LTD., TRICHUR. BY ADV. SRI.P.BALAKRISHNAN (E) THIS INCOME TAX APPEAL HAVING COME UP FOR ADMISSION ON 07/09/2009,THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.N.RAMACHANDRAN NAIR & V.K.MOHANAN, JJ. .................................................................... I.T. Appeal No.448 of 2009 .................................................................... Dated this the 7th day of September, 2009. JUDGMENT Ramachandran Nair, J. Question raised is whether the Tribunal was justified in allowing the assessee's claim for amortization of loss suffered on purchase and sale of permanent securities. Assessee purchased Government securities at price above the face value and the loss is amortized upto the date of maturity. Learned counsel appearing for the respondent cited decision of this court in COMMISSIONER OF INCOME-TAX V. NEDUNGADI BANK (2003) 264 ITR 545 and that of the Supreme Court in UNITED COMMERCIAL BANK V. COMMISSIONER OF INCOME-TAX (1999) 240 ITR 355. We find that the claim is upheld 2 by the High Court as well as the Supreme Court. Consequently departmental appeal is dismissed. C.N.RAMACHANDRAN NAIR Judge V.K.MOHANAN Judge pms