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2017 (10) TMI 477 - ITAT MUMBAIValidity of Order u/s. 263 - Treating the loss as a notional loss - Held that:- 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 value is less than the cost price, in law, they are entitled to deductions and it cannot be denied by the authorities under the pretext that it is shown as investment in the balance-sheet - See CIT Vs. HDFC Bank Ltd. [2014 (7) TMI 724 - BOMBAY HIGH COURT ] The claim of the assessee for loss on the transfer of securities from the category ‘Available for Sale’ to ‘Held to Maturity’ is an allowable deduction, we find merit in the contention of the assessee/appellant. Since, the loss in question is allowable, the Ld. CIT has no jurisdiction to exercise the powers under section 263 of the Act. We, accordingly, set aside the impugned order passed by the Ld. CIT u/s 263 of the Act as bad in law - Decided in favour of assessee.
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