- (1.) The appeal is directed against a judgement and order dated 28th January, 2010 passed by the learned Income Tax Appellate Tribunal "A" Bench, Kolkata in ITA No.1432(Kol) of 2008 pertaining to the assessment year 2005 -06 by which an appeal preferred by the assessee was dismissed. Being aggrieved, the assessee has once again come up in appeal.
(2.) The assessee is a co -operative bank. The assessee is required to invest its moneys in various securities. The securities are purchased by the assessee at the market value. There are instances when the market value of a security is more than the face value. In such a case, the Reserve Bank of India, by its circular dated 28th March, 2005, a copy whereof is at page -28 of the Paper Book, has issued the following guidelines : "Scheduled UCBs may crystalize the provisions requirement arising on account of shifting of securities from HFT/AFS categories to the HTM category consequent to the issue of our guidelines dated 02.09.2004 and amortize the same over a maximum period of five years commencing from the current accounting year ending 31.03.2005, with a minimum of 20% of such amount, each year."
(3.) Based on the aforesaid circular, the assessee has been amortizing the differential amount between face falue and market value of such security.;