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2012 (6) TMI 295 - AT - Income TaxCapital Loss vs Business loss - loss on sale of Government securities treated as business loss - assessee, Co-operative bank registered under Gujarat Co-operative Societies Act and RBI, engaged in banking business had however considered the investments made in the securities as "Investments" and not as "stock in trade" - Held that:- It is undisputed that assessee has been treating for all intents and purposes the securities as its investments right from the date of its acquisition and it continues to treat it as investments. The C.B.D.T. Circular No.599 dt. 24.4.1991 has clarified that the securities held by Bank must be regarded as "stock in trade" meaning thereby "regarded" by whom i.e. by the Bank itself. Undisputedly in the present case the Bank in question has not regarded the "investment" as "stock in trade" but as "investment.", therefore loss on sale of investments has to be taken as capital loss and not business loss - Decided in favor of Revenue.
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