2014 (12) TMI 1351

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.... This appeal is preferred by the revenue challenging the order passed by the Tribunal granting relief to the assessee. 2. The substantial question of law that arises for consideration in this appeal is as hereunder: ") Whether the Tribunal was correct in holding that the Government securities of Rs. 5,21,96,937/- is an allowable deduction by following the view of the Apex Court (not....

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....ccounting adopted by the tax payer consistently and regularly cannot be discarded by the Departmental authorities on the view that he should have adopted a different method of keeping the accounts or on valuation. Financial institutions like Bank, are expected to maintain accounts in terms of the RBI Act and its regulations. The form in which, accounts have to be maintained is prescribed under the....

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....ntries are made in the books of accounts. It is not decisive or conclusive in the matter. For the purpose of IT Act whichever method is adopted by the assessee, a true picture of the profits and gains i.e. real income is to be disclosed. For determining the real income, the entries in the balance sheet is required to be maintained in the statutory form may not be decisive or conclusive. It is open....

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....d and allowed. Therefore, notwithstanding that in the balance sheet, it is shown as investment, for the purpose of Incometax Act, it is shown as stock-in-trade. Therefore, the value of the stocks being closely connected with the stock market, at the end of the financial year, while valuing the assets, necessarily the Bank has to take into consideration the market value of the shares. If the market....