2013 (11) TMI 1642

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..... ty, the said Security cannot be treated as a purely investment. Law is well settled that the Securities held by the Bank are in the nature of Stock-in-Trade. Nomenclature cannot be decisive for the assessee Bank. We, therefore, hold that the loss on the sale of the Securities is revenue in nature and same is allowable.
SHRI R.S. PADVEKAR, JUDICIAL MEMBER AND SHRI R.K. PANDA, ACCOUNTANT MEMBER .....

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..... . 2009-10 declaring total loss of Rs. (-)27,51,096/-. It was noted by the Assessing Officer that the assessee debited an amount of ₹ 81,67,500/- towards the depreciation on investment on the Government securities held under the category of "Held to Maturity" (HTM). In the opinion of the Assessing Officer, the securities held under the HTM category are in the nature of Capital Asset and secur .....

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..... td. (supra). In the said case the Tribunal has held that all the securities held by the Bank from part of the stock-in-trade. The operative part of the Tribunal decision is as under: 14. We have heard the parties. The Ld. Counsel placed his heavy reliance on the decision of the Hon'ble High Court of Bombay in the case of CIT Vs. Bank of Baroda and in the case of UCO Bank Vs. CIT, 240 ITR 355 (SC .....

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..... Supreme Court in the case of United Commercial Bank (Supra). 15. In the case of United Commercial Bank (Supra), even the issue of valuation of the stock in trade of the investment was before the Hon'ble Supreme Court. In the case of the assessee, the issue is regarding allowability of the loss on the sale of the Securities. Merely because the Securities are kept under the head till the maturity .....

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..... vour of the assessee by the ITAT, Pune in the case of The Sangli Bank Ltd. Vs. ACIT, Circle-2, Sangli being ITA No. 846/PN/2006 order dated 30-05-2013. In our opinion, no interference is called for in the order of the Ld. CIT(A). Accordingly, same is confirmed. 6. In the result, the Revenue's appeal is dismissed. Pronounced in the open Court on 29-11-2013
Case laws, Decisions, Judgements, Or .....

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