2015 (12) TMI 1780 - HC - Income Tax

Depreciation on investments on government securities held to maturity - whether such securities were held as a investments and not as stock-in-trade ? - Held that - Appearing for the parties agree that the point in issue is covered by the decision of this Court in KARNATAKA VIKAS GRAMEEN BANK 2015 (12) TMI 1420 - KARNATAKA HIGH COURT as held assessee was following the method of accounting namely at cost or market value whichever is lower . It is not in dispute that this practice was accepted by the Revenue throughout - notwithstanding the preparation of the balance sheet and describing the security under a particular nomenclature in compliance with the directions/instructions issued by the RBI the assessee would be lawfully entitled to submit the tax returns on the real taxable income in accordance with the method of accounting consistently and regularly adopted.- Decided in favour of assessee.

Summary

The Karnataka High Court dismissed the appeal based on a previous decision in ITA No.100014/14 C/w ITA No.100013/14, on 14.12.2015. No costs were awarded.