Dismissing the appeal of the revenue the Court held that ; securities held on basis of ‘Held to Maturity’ (HTM) were to be regarded as stock-in-trade and, thus, same had to be valued at cost or market value whichever was less. Court also held that, Tribunal has given the finding that HTM securities were in fact held by assessee as stock-in-trade and receipts on said securities was also offered as business income . (AY. 2005-06)
PCIT v. Bank of Maharashtra (2018) 258 Taxman 205/98 taxmann.com.581 /165 DTR 438 /(2019) 410 ITR 413 (Bom)(HC) Editorial: SLP is granted to revenue ; PCIT v. Bank of Maharashtra (2018) 258 Taxman 204/ 406 ITR 32 ( St) (SC)
S. 145 : Method of accounting –Banking company-Stock in trade-Securities held on basis of ‘Held to Maturity’ (HTM) were to be regarded as stock-in-trade and, thus, same had to be valued at cost or market value whichever was less.