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TMI Blog2016 (4) TMI 942X X X X Extracts X X X X X X X X Extracts X X X X ..... resident Non-repatriable account deposits is not entitled for exemption u/s 10(4) of the Act. Accordingly, the interest on the Non-resident Non-repatriable account deposits was added to the total income. The Assessing Officer has also levied penalty u/s 271(1)(c) of the Act on the ground that the claim made by the assessee that the interest on the Non-resident Non-repatriable account deposits is exempted from taxation. This Tribunal is of the considered opinion that after furnishing all the details for making a claim before the Assessing Officer under the Income-tax Act, 1961, cannot be construed as furnishing inaccurate particulars of income. The details of deposits made by the assessee and the interest accrued on such deposits are very mu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fficer's contention that the entire interest receipt of ₹ 4,69,43,615/- was taxable for the assessment year 2005-06 has not been approved by the CIT(A) and the amount taxable during the assessment year 2006-07 has been determined at ₹ 33,69,100/-. The Assessing Officer further found that the residential status of the assessee during the year under consideration was 'resident', therefore, the interest is not exempt u/s 10(4)(i) of the Act. The claim of the assessee that the interest on the deposits made was exempt u/s 10(4) of the Act has been elaborately considered by the Assessing Officer and the CIT(A) in the assessment/appellate proceedings and it was rejected. Since the assessee has not returned the interest inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the assessee was following cash system of accounting, therefore, the interest income of ₹ 4,69,43,615/- is taxable during the assessment year 2005-06. The assessee claimed before the CIT(A) that he was following mercantile system of accounting, therefore, the interest income has to be taxed on accrual basis. The CIT(A) found that the status of the assessee is only 'resident' and not 'ordinarily resident'. The CIT(A) further found that the interest accrued in the Non-resident Non-repatriable account deposits of the assessee was exempt from tax u/s 10(15)(iv)(fa) of the Act for the financial years 2001-02 and 2002-03 when the assessee's status was 'resident'. The ld. DR further submitted that for the year u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e details for making a claim before the Assessing Officer under the Income-tax Act, 1961, cannot be construed as furnishing inaccurate particulars of income. The details of deposits made by the assessee and the interest accrued on such deposits are very much available before the Assessing Officer. During the course of assessment proceedings, the assessee claimed that interest on such deposit is exempt from taxation. This Tribunal is of the considered opinion that this claim cannot be construed as furnishing of inaccurate particulars of income in view of the judgment of the Apex Court in Reliance Petroproducts Pvt. Ltd. (supra). In view of the above, we are unable to uphold the orders of the lower authorities. Accordingly, the orders of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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