9911796707
TMI Blog2006 (7) TMI 132X X X X Extracts X X X X X X X X Extracts X X X X ..... er of funds from one account to another. - transfer of the account cannot be equated to the closure of the account even where the entire amount is withdrawn. Hence, the first respondent-bank is not justified in insisting upon clearance from the Assessing Officer as a condition precedent for considering the request of the petitioners for transfer of deposit from account B to account A. - - - - - Dated:- 13-7-2006 - Judge(s) : MS. G. ROHINI. JUDGMENT Ms. G. Rohini J.- The petitioners herein have deposited a sum of Rs. 40,22,000 with the first respondent-bank under the Capital Gains Accounts Scheme, 1988, to get the benefit of exemption under section 54 of the Income tax Act, 1961 with regard to the sale of their immovable properties. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or exemption under section 54, 54B, 54D, 54F or 54G of the Income-tax Act, 1961. Para 2 of the said Scheme defines "account A" and "account B" as under: "2.(b) 'account A' means deposit account A mentioned in paragraph 4 of this Scheme: (c) 'account B' means deposit account B mentioned in paragraph 4 of this Scheme." In paragraph 4 of the Scheme, the types of deposits have been specified as under: "4. Types of deposits.-(1) There shall be two types of deposit accounts, namely- (i) 'deposit account A'-and (ii) 'deposit account B'. (2) The deposit made under account A shall be in the form of 'savings deposit' and subject to the other provisions of this Scheme, withdrawals under this account can be made from time to time by the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ish in Form B the requisite particulars of his account A to which the amount from account B is required to be transferred; (b) Where the depositor is not having a deposit in account A, he shall state such fact and also make a request for opening an account A in his name, as specified in Form B. (4) If the request under sub-paragraph (2) has been made for transfer of amount standing to the credit in account B, before the expiry of the specified period for which the deposit in account B was made, such request shall be treated as premature withdrawal of amount from deposit in the said account B and the amount of interest accrued, if any, in the said account B shall be calculated by the deposit office in accordance with the provisions of su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in account B to account A before the expiry of the specified period, for which the deposit in account B was made, shall be treated as premature withdrawal. The said paragraph runs as under: "9. Withdrawal from the account- ... (5) A depositor intending to make withdrawal from his deposit in account B, shall first apply in the manner prescribed in sub-paragraph (2) of paragraph 7 for transfer of the amount standing to his credit in account B to account A and may withdraw the requisite amount in the same manner and subject to the same conditions as stipulated in sub-paragraphs (1) and (3) after the amount standing to his credit in his account B has been credited to his account A by the deposit office. (6) In case the application under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... agraph 13 of the Scheme, relied upon by the first respondent-bank may be extracted as under: "13. Closure of the account.-(1) If a depositor desires to close his account, an application shall be made with the approval of the Assessing Officer who has jurisdiction over the depositor to the deposit office in Form G or as near thereto as possible, and the deposit office shall pay the amount of balance including interest accrued, to the credit in the account of the depositor by means of crediting such amount to any bank account of the depositor ...." A plain reading of paragraph 13 vis-à-vis paragraph 7, makes it clear that the two provisions are meant for different purposes. Whereas paragraph 7 provides for transfer or conversion of the ac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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