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2020 (6) TMI 287 - AT - Income TaxNature of loss - write off of business investment resulting into loss - business loss or capital loss - DR submitted that the investment made by the assessee is a capital investment - HELD THAT:- A current investment refers to an investment that is readily realizable and is held for not more than one year from the date on which such an investment is made. Long-term investment refers to an investment other than the current investment even though such investments are readily marketable. To determine the carrying amount for current investments to be stated in the balance sheet, the lower of cost or fair value of such an investment must be considered he carrying amount of the long-term investment is typically the cost of such an investment. However, if there is a permanent reduction in the value of the long-term investment, the carrying amount of such an investment is also reduced. Such a reduction is charged to P&L statement. Such a reduction in the carrying amount is reversed when there is an increase in the value of such an investment or the reasons that lead to a reduction in its carrying amount do not exist anymore. Apparently as per accounting policy and Notes to Accounts also the investments in the above company are long-term investments. No infirmity in the orders of the lower authorities and confirmed their action. - Decided against assessee.
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