1998 (7) TMI 42

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....BABU J.---The Revenue wants to blow hot and cold. It contended in a case concerning the same assessee in respect of an earlier assessment year that the investment held by it is stock-in-trade. It now wants to contend to the contrary and claim that investment made by the assessee-bank is not stock-in-trade. The contention of the Revenue with regard to the nature of the investment made by the ban....

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.... is stock-in-trade as the bank had the option of either maintaining a cash reserve or holding the money in investments. This court also in the course of the order made in the earlier tax case, referred with approval to the decision of the Karnataka High Court in the case of Karnataka Bank Ltd. v. CIT [1978] 114 ITR 421 and after referring to the Full Bench of this court in the case of CIT v. Madra....

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....h approval by this court, and held that the change in the method of valuation of the investment was permissible, as the assessee had the option of valuing the investment at cost or at market price. The fact that the assessee had adopted the cost price in earlier years, but chose to change that mode of valuation to the market price was not in any way contrary to the requirements of the Act. No exce....