Loss on fixed deposit investments is capital loss: Telangana HC

M.Vinayak Vs DCIT (Telangana High Court)

Telangana High Court held that loss suffered on deposits in nature of fixed deposit investments is capital loss. The same cannot be treated as bad debt or trading loss. Accordingly, appeal dismissed.

Facts- The present appeal has been preferred by the assessee. The substantial question of law involved therein is whether the loss of Rs.26,15,569/-sustained by the appellant on account of moneys deposited in Krishi Bank being lost due to liquidation of the Bank is allowable as a deduction as the same is a trading loss or

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