Income : Excess cash received at cash counters of bank : Liable to be repaid to the real owner : Not income of assessee.

[CIT v. Bank of Rajasthan
Ltd., 326 ITR 526 (Bom.)]

The assessee-bank claimed
that the excess cash received at the cash counter is liable to be repaid to the
real owner and therefore it cannot be treated as income of the assessee. The
Assessing Officer did not accept this contention and treated the excess cash as
income of the assessee. The Tribunal allowed the assessee’s claim. The Tribunal
held that the liability on account of excess cash received at the cash counters
of the bank represents the liability to pay the customers as and when they may
demand payment. The Tribunal, therefore held that it can not be considered as
income of the assessee.

On appeal by the Revenue,
the Bombay High Court upheld the decision of the Tribunal and held as under :

“(i) Before the Tribunal
reliance was placed on the cash manual of the assessee which provides that the
bank has to make a record of the excess cash, this has to be considered as
liability of the bank and the collection is required to be handed back to the
real owner in accordance with the prescribed procedure.

(ii) The reasoning of the
Tribunal has not been demonstrated to suffer from any perversity.

(iii) The question raised
does not give rise to any substantial question of law.”