2003 (8) TMI 26

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....HA SHETTY J. -In this appeal, filed under section 260A of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), the appellant has called in question the correctness of the order dated December 18, 2002, made in I. T. A. No. 1008/Bang of 2002 by the Income-tax Appellate Tribunal, Bangalore, reversing the order dated April 12, 2002, passed by the Commissioner of Income-tax (Appeals), Hubl....

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....g the correctness of the impugned order submitted that the finding recorded by the Tribunal is erroneous in law. In our view, there is no merit in the submission made by Smt. Bagchi. The Division Bench of this court in the case of CIT v. Sri Ram Sahakari Bank Ltd. [2004] 266 ITR 632 made in I. T. A. No. 137 of 2002 disposed of on September 5, 2002, while considering the similar question has tak....

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....nds. The reasoning on its very face is contrary to the law laid down by the Supreme Court in the case of Bihar State Co-operative Bank Ltd. v. CIT [1960] 39 ITR 114. In this case, the Supreme Court has held that (page 122): 'As we have pointed out above, it is a normal mode of carrying on banking business to invest moneys in a manner that they are readily available and that is just as much a pa....