Depreciation on securities Available for Sale (AFS) is allowable claim

Maninagar Co. Op. Bank Ltd. Vs DCIT (ITAT Ahmedabad) Introduction: This article dissects the case of Maninagar Co. Op. Bank Ltd. versus DCIT, as adjudicated by ITAT Ahmedabad for Assessment Year 2012-13. The primary concern revolves around the disallowance of depreciation claimed by the bank on Government Securities. Despite the continuous assertion by the bank that these were Available for Sale (AFS) securities, the Revenue authorities insisted on categorizing them as Held to Maturity (HTM), leading to the disallowance. Detailed Analysis: The bank, in computing its income, claimed depreciatio...