basis in the appropriate assessment year during which the assessee held the security. This difference could have been treated by the department as interest on securities under section 18. However, in the instant case, the department has assessed the said difference under, section 28 under the head “Business” and not under the head “interest on securities”. Having treated the Civil Appeal No.3291­3294 of 2009, etc. Page 17 of 45difference under the head “Business”, the A.O. disallowed the broken period interest payment, which gave rise to the dispute. It was open to the department to assess the above difference under the head “interest on securities” under section 18. However, they chose to assess the interest under the head “business” and, while doing so, the department taxed broken period interest received, but disallowed broken period interest payment. It is in this light that one has to read the judgment of the Karnataka High Court and the Supreme Court in Vijaya Bank's case. In