2004 (7) TMI 52

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.... is preferred against the order of the Income-tax Appellate Tribunal, Madras, "A" Bench, dated November 25, 2002 in I.T.A. No. 4108 of 1989. The assessee is a banking company. In the course of the assessment for the assessment year 1986-87, the Assessing Officer found that the assessee, who had been earlier valuing the investment on Government securities at cost price, valued the same at market....

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....llant/Revenue raising the following substantial questions of law. "1. Whether, on the facts and circumstances of the case, the Tribunal had enough material to hold, and was right in law in holding that the Government securities held by the assessee-bank are to be treated as stock-in-trade and not investment? 2. Whether, on the facts and circumstances of the case, the Tribunal was right in la....

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....In the balance-sheet, if the securities and shares are valued at cost but from that no firm conclusion can be drawn. A taxpayer is free to employ for the purpose of his trade, his own method of keeping accounts, and for that purpose, to value stock-in-trade either at cost or market price. 3. A method of accounting adopted by the taxpayer consistently and regularly cannot be discarded by the dep....