1978 (5) TMI 34

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....ed by VENKATARAMAIAH J.--Since a common question of law arises for consideration in these two cases they are disposed of by this common judgment. I.T.R.C. No. 7 of 1975 relates to the assessment year 1967-68 and I.T.R.C. No. 8 of 1975 relates to the assessment year 1970-71. The assessee in these two cases is the State Bank of Mysore, Bangalore. In the course of its business the assessee h....

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....ed by the assessee against the said orders of the Income-tax Officer before the Appellate Assistant Commissioner of Income-tax and the Income-tax Appellate Tribunal, Bangalore Bench, were unsuccessful. At the instance of the assessee, the following questions have been referred to this court : " (1) Whether, on the facts, and in the circumstances of the case, the sum of Rs. 3,20,823 is liable to....

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....nd (iv) That the holding of the foreign bank balances and the related transactions were incdental to the assessee's banking business. On the basis of the above facts the Tribunal has found that the amounts in question constituted part of income and were liable to tax. We do not think that there is any error in the decision of the Tribunal. The Tribunal's view is in accordance with the princi....

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....zing of the foreign currencies in question at the time of devaluation or revaluation, as the case may be, and that the assessee was free to convert the foreign currencies into rupees, if it desired to do so. In fact, it is found that the assessee had utilised its bank balances in foreign countries during the relevant period to make payments in foreign currencies on behalf of its clients and, in tu....