9911796707
TMI Blog2018 (3) TMI 316X X X X Extracts X X X X X X X X Extracts X X X X ..... o Assessment Year 2005-06. 2 Revenue urges the following questions of law, for our consideration: "(i) Whether on the facts and in the circumstance of the case and in law, the Tribunal was justified in deleting the addition of Rs. 359,24,58,508/in allowing loss of valuation of Held to Maturity (HTM) securities, when HTM securities are capital in nature ? (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 of the Act are not applicable to a Banking Company ?" 3 The Respondent-Bank in terms of the RBI Guidelines classifies its investments into three categories: (A) Held to Maturity (HTM) (B) Available for Sale (AFS) and (C) Held for Trading (H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were viewed as stock-in-trade and receipts on thereof were in fact offered as business income. In the aforesaid facts, the impugned order holds that the HTM securities are held by the Respondent Bank as as stock-in-trade. It holds the categorization as HTM securities as stock-in-trade is quite tenable because the very nature of banking activities allowed as per Banking Regulation Act, 1949 and HTM securities being categorised as 'stock-in-trade' is not dependent on the frequency of their sale/purchase carried out by the Respondent Bank. On the aforesaid basis, the impugned order of the Tribunal allowed the Respondent-Assessee's Appeal and directed the Assessing Officer to accept the plea of the Respondent-Bank after verifying ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee is estopped from treating the investment as stock-in-trade is not correct...." 8. 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. 9. In the above view, proposed question of law at Sr.No.(i) as formulated does not give rise to any substantial question of law and not entertained. 10. Appeal entertained on substantial question of law No.(ii). 11. Registry is directed to communicate copy of this order to the Tribunal. This would enable the Tribunal to keep papers and proceedings relating to the present appeal available, to be produced when so ..... X X X X Extracts X X X X X X X X Extracts X X X X
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