Surat Bharuch Gramin Bank, Bharuch V. The Jt.CIT., Bharuch Circle, Bharuch

ITA 3981/AHD/2007

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 8687 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 4 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-03-2010
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Next Hearing Date: 16-02-2010
• Assessment Year: 2002-2003
• Appeal Filed On: 30-10-2007
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Reasonable cause
• Section: 271E

Judgement Text

11 ITA NO. 3981 & 3985/AHD/2007 11. WE ARE UNABLE TO ACCEPT THE CONTENTION OF THE L D. A.R. THAT IT IS NOT FOR INCOME- TAX AUTHORITIES TO LOOK INTO THE FULFILLMENT OF THE FORMALITIES FOR OPENING OF SAVINGS BANK ACCOUNT AS PER RBI GUIDELINES AND IT IS ONLY F OR THE RBI AUTHORITIES TO TAKE CARE OF WHETHER SUCH FORMALITIES FOR OPENING THE SAVINGS BANK ACCOUNT ARE FULFILLED OR NOT. IT IS ONLY FOR THIS PURPOSE THAT THE PROVISION OF SECTION 269T HAS BEEN INSERTED TO PLUG THE LOOPHOLES IN FOLLOWING RBI GUIDELINES OR OTHER WISE, WHICH ENABLE THE TAXPAYERS TO CIRCULATE THEIR BLACK MONEY WITHOUT BEING DETECT ED BY THE INCOME TAX DEPARTMENT. THE BANKERS ARE EXPECTED TO ADHERE STRICTLY TO KNO W-CLIENT CONCEPT THEREBY COLLECT NECESSARY DETAILS OF THE CLIENT APPROACHING TO OPEN THE SAVINGS BANK ACCOUNT SO THAT IN CASE NEED ARISE, INCOME TAX DEPARTMENT CAN IDENT IFY AND KNOW THE SOURCES OF DEPOSITS OF THE MONEY IN THE BANK. IT IS FURTHER ME NTIONED THAT TO KEEP THE BANKING SECTOR IN NEUTRAL ZONE, I.E. NOT TO APPEAR TO SIDE WITH THE TAX EVADERS AS ENABLING THEM IN LAUNDERING THEIR BLACK MONEY, THE ASSESSEE-BAN K IS REQUIRED TO PROVIDE THE DETAILS OF THE IDENTITY OF THE PERSONS OPENING THE SAVINGS BANK ACCOUNT, WHEREIN FDRS ON MATURITY IS DEPOSITED. THUS, ONLY IN THOSE WHERE TH E ASSESSEE-BANK IS UNABLE TO PROVIDE COMPLETE DETAILS OF SAVINGS BANK ACCOUNT-HO LDERS, WHOSE ACCOUNTS WERE OPENED ON THE SAME DAY AND MONEY WAS ALLOWED TO BE ENCASHED AND WHERE THERE IS NO REASONABLE CAUSE FOR NOT PROVIDING THE DETAILS OF SAVING BANK ACCOUNT AND ITS HOLDERS, THEN PENALTY UNDER SECTION 271E WOULD BE L EVIABLE. 12. IN ANY CASE, THERE SHOULD BE CLEAR FINDING BY T HE ASSESSING OFFICER IN RESPECT OF EACH SAVINGS BANK ACCOUNT IN ACCORDANCE WITH OUR OBSERVATION MADE ABOVE. AS A RESULT, WE RESTORE THE MATTER OF PENALTY TO THE EXT ENT OF RS.30,49,093/- (CONFIRMED BY THE LEARNED CIT(APPEALS) TO THE FILE OF ASSESSING OFFICER FOR DECISION AFRESH. 13. IN THE RESULT, THE APPEAL OF THE REVENUE IS DI SMISSED AND THE APPEAL OF THE ASSESSEE IS TREATED AS PARTLY ALLOWED FOR STATI STICAL PURPOSES. ORDER SIGNED, DATED AND PRONOUNCED IN THE COURT ON 26/ 03 /2010 SD/- SD/- ( D.C. AGRAWAL ) ( T.K. SHARMA ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD, DATED 26 / 03 /2010 SL/TC NAIR,SR.PS 12 ITA NO. 3981 & 3985/AHD/2007 COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE LD. CIT(APPEALS)-VI, BARODA 5. THE DR, AHMEDABAD BENCH 6. THE GUARD FILE. BY ORDER, //TRUE COPY// (DY./ASSTT.REGISTRAR), ITAT, AHMEDABAD