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| The Tax Publishers2020 TaxPub(DT) 1747 (Pune-Trib) INCOME TAX ACT, 1961
Section 28
Recognition of investments in HTM category as 'stock-in-trade' was not dependent on frequency of their sale/purchase carried out by assessee-bank and accordingly, loss on valuation of securities held under HTM category was allowable.
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Business loss - Allowability - Loss on valuation of securities Held to Maturity (HTM) by assessee bank -
Assessee-bank claimed loss on valuation of securities Held to Maturity (HTM). AO disallowed assessee's claim on the ground that investments in HTM category were not tradeable and assessee might not be selling the HTM Securities prior to their maturity.Held: It cannot be denied that securities held by the bank are stock-in-trade and for the purposes of valuation of closing stock it is permissible to adopt cost or market value, whichever is lower. Recognition of investments in HTM category as 'stock-in-trade' is not dependent on frequency of their sale/purchase carried out by assessee-bank and accordingly, loss on valuation of securities held under HTM category was allowable.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2013-14 & 2014-15
INCOME TAX ACT, 1961
Section 14A
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