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TMI Blog2021 (4) TMI 252X X X X Extracts X X X X X X X X Extracts X X X X ..... bank account during AY 2016-17 which stand closed in AY 2006-07. However, considering the totality of the facts of the case and in interest of justice, we deem it proper to restore the matter back to the file of the AO for adjudication of the issue afresh stating that the addition towards interest on outstanding credit balance in foreign bank account can only be made on the basis of some evidence/material. Addition cannot be simply made on the basis of presumption and surmises - Grounds raised allowed for statistical purpose. - ITA No. 6283/Del/2019 - - - Dated:- 31-3-2021 - R. K. Panda , Member ( A ) For the Appellant : Sanjiv Mahajan , Sr. DR For the Respondents : Hiren Mehta , CA ORDER Per R. K. Panda, AM This appeal filed by the Revenue is directed against the order dated 16.05.2019 of the learned CIT(A)-29, New Delhi, relating to Assessment Year 2016-17. 2. Facts of the case, in brief, are that the assessee is an individual and derives income from business or profession, capital gain and income from other sources. He filed his return of income on 15.07.2016, declaring loss of ₹ 10,01,742/-. During the assessment proceedings, the Assessing Of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 15739.27 62.43 37792.62 Rondeberg Ltd. 2014-15 336599.98 4% 13463.99 3500643.97 62.43 840556.90 Taira Foundation 2014-15 10620.90 4% 424.87 11045.77 62.43 26524.63 Total 362354.79 4% 14494.19 376848.98 62.43 904872.28 Asprey Worldwide S.A. 2015-16 15739.27 4% 629.57 16368.84 66.25 41709.01 Rondeberg Ltd. 2015-16 3500643.97 4% 140025.76 3640669.73 66.25 9276706.6 Taira Foundation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h is placed in the paper book at page 1 to 40, he submitted that the addition made by the AO in the impugned assessment year originates from the addition made in AY 2006-07. Referring to the assessment order for 2006-07, he submitted that an amount of ₹ 1,20,37,863/- was added by the AO as undisclosed foreign bank account u/s. 69 of the Act being the peak balance of the alleged foreign bank account maintained with HSBC Bank Switzerland. He submitted that irrespective of the fate of the said addition assessing authorities thereafter computed interest @ 4% on the peak balance of the alleged foreign bank account and in subsequent years, such addition was made on the basis of such premises. Accordingly, an amount of ₹ 9,98,649/- being interest earned on such account was made to the total income of the assessee for the current assessment year. He submitted that since the CIT(A) following his order for AY 2013-14 has deleted the addition and the order of the CIT(A) is cryptic, therefore, the copy of the order for AY 2013-14 of the CIT(A) is necessary to be gone through, which is placed in the paper book pages 44 to 48. The learned counsel for the assessee drew the attention o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n made on account of notional interest being hypothetical income and not real income cannot be added to the total income of the assessee. He submitted that the incidence of tax lies only on real income. Further, the rate of interest @ 4% is not rational whatsoever and arbitrary and fictional. He submitted that the manner of arriving at such arbitrary rate has also not been provided in the assessment order. Relying on various decisions, he submitted that additions made by the income tax authorities can be sustained only on credible and cogent evidence and a fiction cannot be foisted upon another fiction. He submitted that where Revenue fails to demonstrate the same, the addition made on the said basis are liable to be deleted and set aside. 8.1. Referring to the copy of the assessment order for AY 2006-07, copy of which is placed at paper book pages 1-40, the learned counsel for the assessee drew the attention of the Bench to page 3 to 7 of the said order on which the information received from the French Government about the existence of the HSBC Bank account has been reproduced. Referring to pages 10-17 of the order, he drew the attention of the Bench to the translation of the s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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