2015 (6) TMI 551

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..... t:- The securities were stock in trade and so depreciation would amount to loss and not income. The authorities below held that this aspect is well settled through the judgment of this Court in the case of Commissioner of Income Tax vs. Bank of Baroda, reported in (2003 (3) TMI 80 - BOMBAY High Court) as well as in the case of UCO Bank vs. the Commissioner of Income Tax, (1999 (9) TMI 4 - SUPREME .....

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..... sessment year 2009-10 declaring total loss of ₹ 27,51,096/-. The Assessing Officer debited an amount of ₹ 81,67,500/- towards depreciation on investment on the Government securities held under the category of "HELD TO MATURITY". In the opinion of the Assessing Officer, the securities held under the "HTM" category are in the nature of capital assets and therefore, were available for sal .....

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..... e bank till the maturity, the said security cannot be treated as a purely investment. The security held by the bank is in the nature of stock in trade. 4. In view of the above, reliance placed by the department on the judgment in the case of Vijaya Bank vs. Commissioner of Income Tax, reported in 187 ITR 541 SC is misplaced. Thus, the appeal does not raise any substantial question of law and the .....

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