payment made by the Civil Appeal No.3291­3294 of 2009, etc. Page 15 of 45assessee for broken period interest. The assessing officer followed the decision in the case of Vijaya Bank Ltd1. The Bombay High Court distinguished the decision in the case of Vijaya Bank Ltd.1 and held thus: “18. The assessee­Bank, like several other Banks, were consistently following the practice of valuing the securities/interest held by it at the end of each year and offer for taxation, the appreciation in their value by way of profit/interest earned due to efflux of time. The Bank also claimed deduction for broken period interest payments. However, the department did not accept the assessee's method in the assessment year in question in view of the judgment of the Karnataka High Court in the case of (Commissioner of Income­tax, Mysore v. Vijaya Bank)5, reported in 1976 Tax Law Reporter page 524. This judgment has been subsequently upheld by the Supreme Court in 187 I.T.R. page 541. In view of the judgment