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TMI Blog2018 (3) TMI 316X X X X Extracts X X X X X X X X Extracts X X X X ..... es of income chargeable to tax under the Act. In the view of the clear finding of fact recorded by the impugned order of the Tribunal that the securities HTM are stock-in-trade and the income on sales have been offered to tax as business income, has not been shown to be perverse. Appeal entertained on substantial question of law No.(ii)- Whether on the facts and in the circumstances of the case and in law, the Tribunal was justified in holding that provisions of Section 115JB are not applicable to a Banking Company ? - Income Tax Appeal No. 920 of 2015 - - - Dated:- 27-2-2018 - M.S. SANKLECHA SANDEEP K. SHINDE, JJ. Mr. Tejveer Singh, for the Appellant. Mr. Jehangir D. Mistry, Senior Counsel with Ms. Hema Desai with Mr. Dur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... k-in-trade and therefore, have to be valued at cost or market value whichever is less. Both the Assessing Officer as well as the CIT (A) disallowed the claim and held that it would be continued to be valued at cost on the ground that for earlier years, the Respondent-Bank has been showing value of (HTM) securities at cost. Therefore, it is not open to the Respondent-Bank to change the valuation. 5. In appeal, the Tribunal placed reliance upon the decision of the Karnataka High Court in the case of CIT v. Corporation Bank Ltd. (1998) 174 ITR 616 (Kar) and held that irrespective of the basis adopted for valuation in earlier years, the assessee had the option to change the method of valuation of its closing stock to lower of cost or mar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ver is lower, cannot be faulted. 7. We find that the challenge of the Revenue before us is not that the change sought in the method of valuation of its stock is not bona fide and that it is not regularly followed thereafter. Its only grievance is that these RBI guidelines classify the same as Investments and, therefore, for the purpose of the Act also HTM securities should be considered to be the Investments. It is well settled that merely because RBI guidelines direct a particular treatment to be given to particular asset, the same would not necessarily hold good for the purposes of income chargeable to tax under the Act. In fact, the Supreme Court in Southern Technologies Limited v. The Joint Commissioner of Income-Tax reported in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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