COMMISSIONER OF INCOME TAX Vs. MERCANTILE BANK LIMITED

JUDGEMENT

(1.) AT the instance of the Department, the Tribunal has referred the following questions for the opinion of this court for the assessment year 1978 -79 under Section 256(1) of the Income -tax Act, 1961 :

(2.) HEARD learned counsel for the parties.

(3.) AS far as question No. (i) is concerned, the controversy involved therein is squarely covered by the judgment of the Supreme Court in the case of State Bank of Travancore v. CIT : [1986]158ITR102(SC) , and also by the decision of this court dated February 18,1999, in the case of Banque Nationale de Paris v. CIT : [1999]237ITR518(Bom) , in I. T. R. No. 83 of 1986. Accordingly, the said question is answered in the negative, i.e., in favour of the Revenue and against the assessee.