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TMI Blog2021 (4) TMI 477X X X X Extracts X X X X X X X X Extracts X X X X ..... l not change. Moreover, the Department has not disputed the fact that the income derived by the assessee from sale of securities has been offered as business income and the department has also accepted it. Applying the same logic, the expenditure incurred by way of payment of broken period interest while purchasing such securities must be treated as business expenditure. The decisions relied upon by the learned Authorised Representative clearly support this view. In aforesaid view of the matter, we uphold the decision of the learned Commissioner (Appeals) on this issue by dismissing the ground raised by the Revenue. - ITA Nos. 5680 & 5681/Mum/2019 - - - Dated:- 17-3-2021 - Pramod Kumar , Vice President And Amarjit Singh , Member (J) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sons to take any view of the matter than the view taken by the coordinate bench in the aforesaid decision wherein the coordinate bench has inter alia observed as follows:- 2. The issue raised in ground No. 1 is general in nature and does not require any adjudication. 3. The issue raised in ground No. 2 is against the order of Ld. CIT(A) treating the broken period interest, paid at the time of purchase of securities as revenue expenditure by holding that securities held by bank as stock in trade and not as investments and thereby not treating the interest as part of the cost of the securities. 4. The facts in brief are that the assessee treated the broken period interest paid at the time of purchase of securities as revenue exp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... As mandated by the Reserve Bank of India, every bank has to maintain statutory liquidity ratio (SLR). For that purpose Bank invests in Government securities. Therefore, depending upon the requirement a Bank purchases and sales Government security. Generally, interest on Government security is payable in half years. When Government securities are traded, the purchaser has to pay to the seller not only the purchase price of the securities but also the interest accrued thereon from the last due date of the interest till the date of purchase of the securities. This interest from the last due date till the date of purchase is referred to as broken period interest. While the purchaser of the securities pays the broken period interest, the seller ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Department has not disputed the fact that the income derived by the assessee from sale of securities has been offered as business income and the department has also accepted it. Applying the same logic, the expenditure incurred by way of payment of broken period interest while purchasing such securities must be treated as business expenditure. The decisions relied upon by the learned Authorised Representative clearly support this view. In aforesaid view of the matter, we uphold the decision of the learned Commissioner (Appeals) on this issue by dismissing the ground raised by the Revenue. 9. Since the facts of the case at hand are identical to ones as decided by the coordinate bench of the Tribunal. We, therefore, respectfully follow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 21. While completing the assessment for the impugned assessment year, the Assessing Officer disallowed assessee's claim of depreciation on the securities, since, he held them to be in the nature of investment and not stock-in-trade. The learned Commissioner (Appeals), however, allowed assessee's claim by treating the securities held as stock-in-trade. While deciding Revenue's appeal, the Tribunal restored the issue to the Assessing Officer for fresh adjudication after verifying whether securities are held as investment or stock-in-trade . At the time of giving effect to the directions of the Tribunal, the Assessing Officer in order dated 4th June 2012, disallowed assessee's claim of depreciation on the reasoning that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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