2012 (9) TMI 753

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..... effective grounds raised in these appeals read as under:- "2. the learned CIT(A) has erred in allowing the assessee's claim of depreciation of valuation of investment portfolio by treating the investments held by the bank as stock-in-trade. 3. The learned CIT(A) has failed to appreciate the fact that the assessee bank has followed the RBI guidelines for valuation of investment portfolio for the purpose of books but has treated the entire investments as stock-in-trade and valued the same as per least of cost of market value, values for income tax purpose only thereby making a claim for a notional loss. Only real profit/loss can be recognized under the IT Act and not the notional loss arrived at by valuing investment portfolio as per LCM v .....

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..... followed for this assessment year also for the purposes of books of accounts. Reliance was placed on the judgment of the Hon'ble Supreme Court in the case of UCO Bank v. CIT reported in 240 ITR 355. 6. The Assessing Officer however did not find merit in the submissions of the assessee by observing that Circular No.665 issued by the CBDT made it clear that the bank has to adopt guidelines issued by the RBI with respect to valuation of investment portfolio and also Accounting Standards of investments. He also observed that the assessee has followed RBI guidelines for the purpose of books of account, but not for computation of income for the purpose of income tax purposes. Accordingly the claim of the assessee was rejected. 7. The assessee .....

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..... h this is Revenue's appeal, the learned Chartered Accountant appearing for the assessee, placed on record a Xerox copy of the order of the Tribunal in ITA 112/Bang/2008 for the assessment year 2004-05 and drew our attention to para nos.14 to 16 of the said order and pleaded that the issue on hand is squarely covered in favour of the assessee. We have also heard the learned DR and considered the facts and materials on record. 06. In our considered opinion, the decision of the coordinate bench of this Tribunal in assessee's own case is binding on us, facts and circumstances being the same. In the said decision cited above, the Tribunal in para nos.14 to 16 has held as under : "14. We are of the considered view that the decision of the Hon'b .....

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