https://www.taxtmi.com/caselaws?id=11825 For a banking assessee, investments in shares and securities may be valued for income-tax purposes at cost or market value, whichever is lower, because the real income of the business must be determined on a realistic basis. Statutory balance-sheet treatment under the Banking Regulation Act does not make the accounting entries conclusive for tax purposes. Where the market value has fallen below cost by the valuation date, the resulting diminution may be recognised as a deductible loss, and debiting it to the profit and loss account supports that treatment. The earlier Supreme Court principle on valuation of bank securities was treated as applicable. en-us Wed, 12 Mar 2003 00:00:00 +0530 Mon, 29 Sep 2025 13:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=11825 For a banking assessee, investments in shares and securities may be valued for income-tax purposes at cost or market value, whichever is lower, because the real income of the business must be determined on a realistic basis. Statutory balance-sheet treatment under the Banking Regulation Act does not make the accounting entries conclusive for tax purposes. Where the market value has fallen below cost by the valuation date, the resulting diminution may be recognised as a deductible loss, and debiting it to the profit and loss account supports that treatment. The earlier Supreme Court principle on valuation of bank securities was treated as applicable. Case-Laws Income Tax Wed, 12 Mar 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=11825