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2020 (1) TMI 1685 - ITAT AHMEDABADLoss on account of deterioration of value on Govt. Security kept with the Bank - Depreciation on value of Government Securities as same is Stock-in-trade and valued at cost or market price whichever is lower - HELD THAT:- Assessee is a Co.op. Bank and as per mandate assessee has to keep certain investment with itself in order to maintain Statutory Liquidity Ratio (SLR) and Cash Reserve Ratio (CRR) if any loss or deterioration is caused to the value of stock, it is charged to profit and loss account. In our considered opinion, same is allowable as deduction u/s. 37 as Govt. Securities are part of liquid assets, stock in trade. We draw support from a case in the matter of Pr. CIT, Patiala vs. State Bank of Patiala [2017 (2) TMI 125 - PUNJAB AND HARYANA HIGH COURT] where in similar facts and circumstances, relief was granted to the assessee. Law is well settled that the Securities held by the Bank are in the nature of stock-in-trade. In view of the above, we direct A.O. to deleted addition as claimed by the assessee. Appeal filed by the Assessee is allowed.
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