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TMI Blog2016 (5) TMI 1311X X X X Extracts X X X X X X X X Extracts X X X X ..... irmed by the First Appellate Authority as mentioned hereinabove. After giving a thoughtful consideration to the facts in issues qua the findings of the First Appellate Authority, we do not find any reason to interfere with the same. However, in all fairness, the assessee is very much entitled for the diminution in the value of securities for the financial year 2007-08 which is relevant for the assessment year under consideration. We, therefore, direct the A.O to allow the claim of F.Y. 2007-08 as per the provisions of the law. With the above directions, appeal filed by the Assessee is dismissed. - ITA. No: 1579/AHD/2011 - - - Dated:- 18-5-2016 - SHRI RAJPAL YADAV, JUDICIAL MEMBER SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER Appell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f diminution of value of securities. Since, in those years, the assessee was eligible for deduction u/s. 80P of the Act, the assessee did not wrote of the provisions. While during the year, when the securities have been sold, the assessee has claimed the diminution in the value of securities from Financial Year 2002-03 to 2005-06. This claim of the assessee was out-rightly rejected by the A.O stating that when the assessee had already claimed additional benefit equivalent to depreciation on securities in earlier years, it cannot be further allowed to take again the same benefit by not adding the provision for diminution to the loss incurred on sale of securities. The returned income of ₹ 19,46,684/- was assessed at ₹ 64,46,684 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion in the value of the same. As per the guidelines of the RBI the value of these securities has to be taken at the cost price and it is only on their sale that: the difference between the cost price and the sale price that has to be offered as capital gain or loss as the case maybe. In respect of securities held for trading, being stock in trade, the same; have to be valued at cost or market price whichever is lower. Thus the diminution in the value of such stocks has to be taken as the loss in the respective year arid cannot be allowed as a loss of the current year. The action of the appellant in not claiming the loss on the securities held for trading which occurred in the earlier years due to the diminution in their value is not correc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ioned financial year, the assessee was entitled for deduction u/s. 80P of the Act. The deduction is allowed after giving effect to all the statutory deductions available to the assessee. Though the assessee has not claimed the statutory deduction on diminution of value of securities for the simple reason that its income was eligible for deduction u/s. 80P of the Act, be as it may. By claiming the diminution of value of securities during the year under consideration, the assessee is making itself entitled to a double benefit which has been declined by the A.O and has been confirmed by the First Appellate Authority as mentioned hereinabove. 10. After giving a thoughtful consideration to the facts in issues qua the findings of the First App ..... X X X X Extracts X X X X X X X X Extracts X X X X
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