ITAT upholds deletion of addition towards stale draft account

Karur Vysya Bank Ltd. Vs DCIT (ITAT Chennai)

The dispute in Karur Vysya Bank Ltd. vs. DCIT, brought to the Income Tax Appellate Tribunal (ITAT) Chennai, centered around the disallowance of stale drafts. The Assessee, a banking entity, faced an addition to its income due to unclaimed demand drafts categorized under “outstanding liabilities.” However, this addition was challenged before the Commissioner of Income Tax (Appeals) [CIT(A)], where it was successfully contested.

During the assessment proceedings, the Assessing Officer (AO) noted an amount of ₹2,46,14,5

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