ITAT HYDERABAD - Income Tax
Scope of section 68 of the Act – Society included or not – Business of banking – KYC norms followed and systematic record maintained - Held that:- Following Citizen Co-op. Society Ltd. Versus Additional Commissioner of Income-tax, Range-9, Hyderabad ITAT HYDERABAD] - assessee is a Society carrying on the Banking business to its own members and the business is carried on with certain set of guidelines and procedures - Deposits were accepted by staff along with the application at the counters - To the extent of the maintenance of the records is concerned, it is already seen that a systematic record was maintained by the assessee with regard to the transactions by the Bank.
It has accepted all the documents as required under KYC norms - the assesses has proved the identity of the depositor - amounts in the accounts maintained by the assessee are deposits of the customers and/or not under the control of the assessee - provisions of Section 68 are not applicable to the Bank - Society/Bank not required to go for detailed verification of address/whereabouts of the customers - addition u/s 68 cannot be made merely because the address of the customers are incomplete - CIT(A) rightly deleted the addition - the order of the CIT(A) is upheld with regard to deletion of addition u/s 68 of the Act on the deposits accepted by the assessee from public – Decided against Revenue.
It has accepted all the documents as required under KYC norms - the assesses has proved the identity of the depositor - amounts in the accounts maintained by the assessee are deposits of the customers and/or not under the control of the assessee - provisions of Section 68 are not applicable to the Bank - Society/Bank not required to go for detailed verification of address/whereabouts of the customers - addition u/s 68 cannot be made merely because the address of the customers are incomplete - CIT(A) rightly deleted the addition - the order of the CIT(A) is upheld with regard to deletion of addition u/s 68 of the Act on the deposits accepted by the assessee from public – Decided against Revenue.
Regards
Prarthana Jalan
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