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2018 (3) TMI 316 - HC - Income TaxAddition in allowing loss of valuation of Held to Maturity (HTM) securities, when HTM securities are capital in nature - Held that:- The change sought in the method of valuation of its stock is not bonafide and that it is not regularly followed thereafter. Its only grievance is that these RBI guidelines classify the same as Investments and, therefore, for the purpose of the Act also HTM securities should be considered to be the Investments. It is well settled that merely because RBI guidelines direct a particular treatment to be given to particular asset, the same would not necessarily hold good for the purposes of income chargeable to tax under the Act. In the view of the clear finding of fact recorded by the impugned order of the Tribunal that the securities HTM are stock-in-trade and the income on sales have been offered to tax as business income, has not been shown to be perverse. Appeal entertained on substantial question of law No.(ii)- Whether on the facts and in the circumstances of the case and in law, the Tribunal was justified in holding that provisions of Section 115JB are not applicable to a Banking Company ?
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