2013 (11) TMI 1642

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....unil Ganoo ORDER PER R.S. PADVEKAR, JM:- This appeal is filed by the Revenue challenging the impugned order of the Ld. CIT(A), Aurangabad dated 21-01-2013 for the A.Y. 2009-10. The Revenue has taken following ground in the appeal: 1. Considering the facts and circumstance of the case, whether the Learned Commissioner of Income Tax (Appeals), Aurangabad has erred in allowing deduction o....

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.... for Trading" (HFT) are in the nature of stock-intrade. 3. The Assessing Officer, therefore, made the disallowance of the entire amount of Rs. 81,67,500/- which was claimed by the assessee as a diminution in the value of securities and made addition to the total income. The assesse challenged the said addition before the Ld. CIT(A) and Ld. CIT(A) deleted the addition by following decision of th....

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....e before their Lordship was whether the assessee was entitled for deduction on account of depreciation in the value of investments. The method of valuation followed by the assessee Bank was to value investments at cost or market value whichever was lower. The assessee had claimed the depreciation to the tune of Rs. 11,82,35,007/- and the said depreciation was claimed as a deduction which was disal....

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....ly investment. Law is well settled that the Securities held by the Bank are in the nature of Stock-in-Trade. We may like to quote here the decision of the Hon'ble High Court of Kerala in the case of CIT Vs. Nedungadi Bank Ltd., 264 ITR 545. In the said case, the Hon'ble High Court has held that the securities held by the Bank are in the nature of stock-in-trade. Both the authorities below has mere....