The assessee which is a Banking company had kept amount from lapsed demand drafts, gift cheques etc., in its general reserve. Assessee had also credited such amount towards write back of demand drafts, gift cheques, etc. in its profit and loss account and same was claimed as deduction which was allowed as deduction. CIT has held that there was no provision to exclude such amount from taxable income when same was credited by assessee in its profit and loss account to his income, thus, order passed by Assessing Officer was erroneous and was prejudicial to interest of revenue. Tribunal has quashed the order of revision. On appeal dismissing the appeal of the revenue the Court held that the assessee was under an obligation to meet future claims out of general reserve so created.  Accordingly the order of the Tribunal is affirmed. (AY. 2007-08)