IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM WEDNESDAY, THE 19TH AUGUST 2009 / 28TH SRAVANA 1931 ITA.No. 1251 of 2009() ---------------------- ITA.391/COCH/2006 of I.T.A.TRIBUNAL,COCHIN BENCH .................... APPELLANT/APPELLANT --------------------------------------- THE COMMISSIONER OF INCOME TAX, COCHIN BY ADV. SRI.P.K.R.MENON,SR.COUNSEL, GOI(TAXES) SRI.JOSE JOSEPH, SC, FOR INCOME TAX RESPONDENT(S): RESPONDENT ------------------------- THE CATHOLIC SYRIAN BANK LTD, TRICHUR. THIS INCOME TAX APPEAL HAVING COME UP FOR ADMISSION ON 19/08/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C .N. RAMACHANDRAN NAIR & C. K. ABDUL REHIM, JJ. -------------------------------------------- I.T.A. No. 1251 OF 2009 -------------------------------------------- Dated this the 19th day of August, 2009 JUDGMENT Ramachandran Nair, J. The main issue raised that is whether broken period interest is allowable as revenue expenditure stands allowed by a Division Bench decision of this Court in CIT V. NEDUNGADI BANK LTD., 264 ITR 545 in favour of the assessee. The other issue raised pertains to disallowance of premium paid on purchase of Government securities which was amortized by the assessee based on RBI guidelines. Both the appellate authorities held in favour of the assessee, against which the revenue has filed this appeal. We do not find any ground to interfere with Tribunal's order on this issue as well, because assessee was following RBI guidelines in claiming deduction. Consequently, the appeal by the revenue is dismissed on both the issues. (C.N.RAMACHANDRAN NAIR) Judge. (C. K. ABDUL REHIM) Judge. kk 2