Dismissing the appeal of the revenue the Court held that; Amortized premium on investment in govt .Securities held under category “Held to Maturity” ) (HTM) is held to be revenue expenditure. Followed CIT v. Thane Bhart Sahakari bank Ltd. (ITA NO 1117 of 2013 dt. 17 -03 2015) ITA.No 1003 of 2016 dt. 29 -01-2019
PCIT v. Laxmi Co -Operative Bank Ltd. (Bom.)(HC) (UR )
S. 37(1) : Business expenditure-Amortized premium on investment in govt .Securities held under category “Held to Maturity”) (HTM) is held to be revenue expenditure.