IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE V.K.MOHANAN FRIDAY, THE 9TH OCTOBER 2009 / 17TH ASWINA 1931 ITA.No. 946 of 2009() --------------------- ITA.36/COCH/2001 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): --------------- SOUTH INDIAN BANK LTD., TRICHUR. ADV. SRI.P.BALAKRISHNAN (E) THIS INCOME TAX APPEAL HAVING COME UP FOR ADMISSION ON 09/10/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C .N. RAMACHANDRAN NAIR & V.K. MOHANAN, JJ. -------------------------------------------- I.T.A. No. 946 OF 2009 -------------------------------------------- Dated this the 9th day of October, 2009 JUDGMENT Ramachandran Nair, J. The respondent-assessee is a Bank which purchased securities at market value above the face value. Admittedly when the securities were redeemed, respondent will be entitled to get only face value. Consequently, the loss arising on account of purchase at market value is written off in instalments by spreading over the same equally for every year until date of maturity. We are of the view that the Tribunal rightly upheld the assessee's entitlement to write-off of the loss in instalments. Consequently the departmental appeal is dismissed (C.N.RAMACHANDRAN NAIR) Judge. (V.K. MOHANAN) Judge. kk 2