https://www.taxtmi.com/caselaws?id=39064 The High Court of Madras ruled in favor of banks, Lakshmi Vilas Bank Ltd. and Karur Vysya Bank Ltd., allowing them to adjust forfeited margin money against the cost of securities purchased on behalf of constituents. The Court emphasized that the banks acted on behalf of constituents and were entitled to adjust the forfeited amount. It concluded that the banks' profits would only be realized upon selling or redeeming the securities, at which point the reduced cost would be considered for tax liability. The judgment affirmed the Tribunal's decision, stating no evasion of tax liability and awarded costs to the banks. en-us Tue, 06 Apr 1976 00:00:00 +0530 Mon, 12 Apr 2010 12:51:31 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=39064 The High Court of Madras ruled in favor of banks, Lakshmi Vilas Bank Ltd. and Karur Vysya Bank Ltd., allowing them to adjust forfeited margin money against the cost of securities purchased on behalf of constituents. The Court emphasized that the banks acted on behalf of constituents and were entitled to adjust the forfeited amount. It concluded that the banks' profits would only be realized upon selling or redeeming the securities, at which point the reduced cost would be considered for tax liability. The judgment affirmed the Tribunal's decision, stating no evasion of tax liability and awarded costs to the banks. Case-Laws Income Tax Tue, 06 Apr 1976 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=39064