Fixed deposits held by the assessee-bank with another bank MMCB in the course of its business, formed part of its stock-in-trade and, therefore, the loss incurred by the assessee as a result of write off of said deposits is a business loss occurring in the course of assessee’s banking business and not a capital loss. Allowable as business loss. (AY-2013-14 & 2014-15)
Surat National Co-Operative Bank Ltd. v ACIT (2025) 234 TTJ 529 / (Surat)(Trib)
S. 28(i) : Business loss-Fixed deposits held by the assessee-bank with another bank written off—Allowable as business loss.
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