https://www.taxtmi.com/caselaws?id=760276 SC held that banks can claim deduction for broken period interest when securities are treated as stock-in-trade. For AFS and HFT securities, which are always stock-in-trade, broken period interest deduction is available. For HTM securities, treatment depends on whether held as investment or stock-in-trade based on facts. If securities are stock-in-trade, broken period interest constitutes revenue expenditure eligible for deduction, not capital expenditure. The court restored the Tribunal's decision allowing the deduction, overturning the HC judgment that had disallowed it. en-us Wed, 16 Oct 2024 00:00:00 +0530 Mon, 20 Jan 2025 18:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=760276 SC held that banks can claim deduction for broken period interest when securities are treated as stock-in-trade. For AFS and HFT securities, which are always stock-in-trade, broken period interest deduction is available. For HTM securities, treatment depends on whether held as investment or stock-in-trade based on facts. If securities are stock-in-trade, broken period interest constitutes revenue expenditure eligible for deduction, not capital expenditure. The court restored the Tribunal's decision allowing the deduction, overturning the HC judgment that had disallowed it. Case-Laws Income Tax Wed, 16 Oct 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=760276