TaxTMI 
TaxTMI 
2014 (10) TMI 907
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....09, 2009-10 & 2010- 11. 2. In ITA No.2029/PN/2013, the assessee has raised the following Grounds of Appeal. 1. The learned CIT (Appeals), Pune has erred in law and on facts in confirming the addition made by the AO amounting to Rs. 31,734/- on account of Nominal membership fees and Share Transfer Fees without considering following factors: a. That the appellant Bank cannot transact with a person unless he becomes a member. b. The receipt though not refundable is a very necessity of the business to commence with so called new member. The said being one time and non trading receipt, the same has to be treated as capital receipt. ITA Nos.2027 to 2029/PN/2013 c. The Share transfer fee is collected for t....
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.... a. The liabilities outstanding in the Balance Sheet are the amounts collected by the appellant bank in lieu of certain compliances pending from the borrower like non submission of 7/12 extracts, RC books, etc or towards deposit for Gold Auctions or cheque books, Lawad, etc. b. The appellant Banks owes this sum towards these borrowers or depositors, as the case may be. Had the sum been forfeited by Bank, the said could have been considered as 'extinguishment of liability'. However, the Bank has credited most of the amount to the respective Account holders in the subsequent years. c. That the amount collected by the appellant bank which is repayable after a certain event cannot be construed as income . 3 3. At....
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....it relates to an addition of Rs. 22,28,693/- on account of other liabilities. In this context, brief facts are that the Assessing Officer noted that in the Balance Sheet, the assessee has shown outstanding liability of Rs. 22,28,693/- under the head 4 'Other Liabilities'. On being to explain the nature, assessee submitted that the same reflected:- i. Deposits received from the customers towards issue of cheque books that shall be return back to the account holder on closure of account; ii. Auction money received towards gold auction fund to be returned to the borrowers; iii. Security money deposit received till all the prescribed documents are not received from the borrowers, etc. iv. Advance mon....
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....ome lying in the hands of the assessee. The amounts insisted by the bank for issue of cheque books clearly is an income of the bank for the year. In view of these facts, Rs. 22,28,693/- is therefore added to the income of the assessee." 8. The CIT(A) also concurred with the Assessing Officer and thus, the assessee is in further appeal. 5 9. After hearing rival submissions, in our considered opinioned, the stand of the Revenue is unsustainable. It is abundantly clearly that assessee had reflected the impugned sum as a liability in the Balance Sheet. If at all, the Assessing Officer was to treat the same as income in the hands of the assessee, the onus was on him to explain as to how the amounts are to be taxed as incomes. The Ass....