TaxTMI 
TaxTMI 
1978 (9) TMI 108
X X X X Extracts X X X X
X X X X Extracts X X X X
....in respect of interest from deposits in the Singapore branch of the United Commercial Bank. The ITO rejected the claim on the ground that the Banking Companies Regulation Act did not apply to these deposits. On appeal the AAC agreed with the ITO and dismissed the assessee's appeal. It is thus that the matter is in appeal before us. 2. It is pointed out on behalf of the assessee that the interes....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rest on deposits with the banking companies to which the Banking Regulation Act, 1949 (10 of 1949) applies, including any bank or banking institution referred to in s. 51 of that Act or a co-operative society engaged in carrying on the business of banking, including a Cooperative Land Mortgage Bank or a Cooperative Land Development Bank. The stand of the learned counsel for the Department is that ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....case of a banking institution. The person with whom the deposit is made is the U. Co. Bank. Every branch of the bank is not a separate entity or a separate borrower. U. Co. Bank has borrowed the money, may be from persons contacted by any of its branches including the foreign branch. The debtor is in all the cases the U. Co. Bank and not the particular branch where either the borrowing is made or ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t etc. of an Indian bank would be guided where the subject matter is outside India by the law of the place where it is located. Sub-s. (6) of s. 80L deals with deposits with the banking companies. In the present case the U.Co. Bank is a banking company and the assessee has deposited the money with the U.Co. Bank though in a foreign branch. The Banking Regulation Act, subject to any local variation....