period interest paid to the seller as a part of cost but treat it as an item of expenditure under the profit and loss account. A similar circular was issued on 21st April 2001, stating that the Bank should not capitalise the broken period interest paid to the seller as a cost but treated it as an item of expenditure under the profit and loss account. In 2007, the CBDT issued Circular No. 4 of 2007, observing that a taxpayer can have two portfolios. The first can be an investment portfolio Civil Appeal No.3291­3294 of 2009, etc. Page 38 of 45comprising securities, which are to be treated as capital assets, and the other can be a trading portfolio comprising stock­in­trade, which are to be treated as trading assets. 19. As stated earlier, Banks are required to purchase Government securities to maintain the SLR. As per RBI’s guideline dated 16th October 2000, there are three categories of securities: HTM, AFS and HFT. As far as AFS and HFT are concerned, there is no difficulty. When