of Income Tax, West Bengal5, held that government securities are held as stock­in­trade by Banking companies. He submitted that the assessee pays interest for the broken period to which he is not entitled as after the purchase, when the interest becomes due, the assessee gets income for the 3 Civil Appeal No. 1549 of 2006 4 (1965) 57 ITR 306 : 1965 SCC OnLine SC 186 5 (1957) 32 ITR 688 : 1957 SCC OnLine SC 74 Civil Appeal No.3291­3294 of 2009, etc. Page 7 of 45entire period even covering the interest payable before the date on which the assessee makes the acquisition. It is submitted that there cannot be any dispute that such securities held by Banking companies constitute stock­in­trade. He submitted that in the case of Commissioner of Income Tax, Jalandhar v. Nawanshahar Central Cooperative Bank Ltd.6, it was held that investments are a part of the Banking business, particularly when statutorily mandated. It was submitted that Banking companies buy government securities to comply