1 IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.222 OF 2008 The Commissioner of Income Tax-1. ...Appellant vs. M/s.Bombay Mercantile Co-op.Bank Ltd. ...Respondent AND INCOME TAX APPEAL NO.223 OF 2008 The Commissioner of Income Tax-1. ...Appellant vs. M/s.Bombay Mercantile Co-op.Bank Ltd. ...Respondent AND INCOME TAX APPEAL NO.254 OF 2008 The Commissioner of Income Tax-1. ...Appellant vs. M/s.Bombay Mercantile Co-op.Bank Ltd. ...Respondent AND INCOME TAX APPEAL NO.261 OF 2008 The Commissioner of Income Tax-1. ...Appellant vs. M/s.Bombay Mercantile Co-op.Bank Ltd. ...Respondent 2 --- Mr.Vimal Gupta, for Appellants. Mr.B.G.Jhaveri, for Respondents. CORAM: D.K.DESHMUKH & J.P.DEVADHAR, JJ. DATED: 18TH July, 2008. P.C.:- 1. Heard the learned Counsel appearing for both the sides. Perused the order. The tribunal's order is well reasoned order. The Tribunal has held that merely relying on certain observations in the Jankiraman Committee's report, a finding cannot be recorded that the ready forward transactions in the Government securities those which are entered into by the bank were not regular transactions of the respondent-bank. Except observations in the Jankiraman Committee Report, admittedly no other evidence is on record to indicate that the transactions were not entered into by the bank in regular course of business. In our opinion, really speaking, it is the case of lack of evidence to show 3 that there is ulterior motive or fraud in entering into the transaction. In the absence of any evidence, the tribunal has rightly concluded that there is a possibility of bank having entered into ready forward transactions in the Government securities as regular banking transactions specially because at the relevant time there was no ban on entering into a ready forward transaction in Government securities. Taking overall view of the matter therefore, in our opinion, no question of law arises. Hence, the appeal is rejected. (D.K.DESHMUKH, J.) (J.P.DEVADHAR, J.) ---