TaxTMI 
TaxTMI 
2026 (10) TMI 186
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....f the case the Tribunal was right in not considering the ground raised by the revenue with respect to the issue of disallowance of Depreciation on securities. (ii) Whether on the facts and in the circumstances of the case the Tribunal was right in holding that assessee had held the securities as stock in trade and not as investments. (iii) Whether on the facts and in the circumstances of the case the Tribunal was right in not considering the ground raised by the revenue with respect to the issue of disallowance of brokerage paid. (iv)Whether on the facts and in the circumstances of the case the Tribunal was right in not considering the ground raised by the revenue with respect to the issue of disallowance of uncla....
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.... of the Income-tax Officer, the income cannot be properly deduced therefrom, the computation shall be made in such manner and on such basis as the Income-tax Officer may determine." 3. Question No.(ii) is also answered in favour of the assessee following the decision in Commissioner of Income Tax V. Karur Vysya Bank (273 ITR 510) to the effect that the Government securities held by the assessee would constitute stock-in-trade. 4. As far as the third question, relating to payment of interest on brokerage, the issue has been remanded to the file of the Assessing Officer by the Tribunal. Pending this appeal, the issue had been considered by the Assessing officer vide order dated 31.03.2014 and allowed. This question of law is answered in....
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....the hon'ble Supreme Court is quoted below for ready reference : "18. A careful perusal of the above provision leads us to infer that section 41(1) can be pressed into service when an allowance or deduction is sought to be made in respect of loss, expenditure or trad ing liability is incurred by the assessee. In the instant case, the sum of Rs. 58,38,581 has remained with the assessee owing to the fact that the payees or holders of the draft/pay orders had not encashed them. The language employed by the Legislature being unambiguous, it would be incongruous to construe the said sum as either a loss, expenditure or trading liability incurred by the assessee. While dealing with a situation of unclaimed amount, the hon'ble Supr....