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TMI Blog2021 (10) TMI 82X X X X Extracts X X X X X X X X Extracts X X X X ..... garding the addition made by Assessing Officer on account of interest in the HSBC Geneva bank account. 5. We have heard the learned DR as well as Ld. AR and considered the relevant material on record. At the outset, the Ld. AR of the assessee has submitted that this issue has been decided in favour of the assessee by this Tribunal for Assessment Year 2006-07 to 2009-10 and AY 2012-13, vide order dated 22.02.2016. He has pointed out that the Assessing Officer has made identical addition in all the preceding years, which were deleted by the Ld. CIT(A) and further the Tribunal has upheld the order of the Ld. CIT(A) in all those preceding years. 6. On the other hand, Ld. DR has relied upon the order of the Assessing Officer and submitted that the Assessing Officer has computed the interest on the last known balance in the bank account of the assessee with HSBC, Geneva. He has further submitted that the assessee has deliberately not produced the relevant evidence and particularly bank account statement for the current year. 7. Having considered the rival submissions and carefully perusal of the impugned orders of the authorities below it is noted that the Assessing Officer has made t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... US$ 25044.5606 and at para-3.4 he has mentioned the interest imputed at Rs. 15,01,171/- (the mistake is because at para-3.12 of the assessment order he has computed interest @4% Rs. 6,51,158/- instead of US$ 651158). The rate of 4% has been taken arbitrarily without there being any basis for the same and without bringing any material or evidence on record by the AO that interest was also paid on the deposits/balance in the account, particularly in the subsequent years after the years relevant to AY 2007-08 for which there is no statement of the said bank account or any information, as part of the information received under exchange of information or otherwise, in respect of these subsequent years. I have perused the assessment folder in 434 pages (correspondence side) and I could not find any bank statement of the impugned account with HSBC Bank Geneva. The addition on account of interest is notional, calculated by adopting the ad hoc rate of 4%. Even otherwise it is settled law that notional interest cannot be taxed as income. Hence the addition on this account in all the years made by the AO are deleted." 8. The Ld. DR has not disputed the facts as recorded by the Ld. CIT(A) tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .165/Del/2013, ITA Nos.2606/Del/2013 & CO No.166/Del/2013 (iii) Judgement of the Hon'ble Delhi High Court dated 27.5.2015 for AYs 2007-08 and 2008- 09, in ITA No.715/2014, CM No.19243/2014, ITA Nos.722/2014 & 723/2014 (iv) Order of the ITAT for AYs 2007-08 and 2008-09 dated 11.4.2014 in ITA Nos.2237,3718, 3431 & 4641/Del/2013 (v) Judgement of the Hon'ble Delhi High Court dated 23.9.2015 for AY 2009-10 in ITA No.741/2015. 12. The ld. DR though not leaving her ground fairly submitted that this issue is squarely covered in favour of the assessee by the judgements/orders cited by the ld. AR. Nevertheless, she submitted that the revenue has challenged the judgment of the Hon'ble High Court before the Hon'ble Supreme Court, both on the issue of residential status of the assessee as well as the deletion of additions on merits. She relied on the order of the AO and supported the same. 13. After hearing the rival submissions and perusing the material on record, particularly, the judgements/orders cited by the ld. AR, we find that the common issue as mentioned above, involved in the appeals for the AYs 2006-07 and 2007- 08 are squarely covered by the judgements/orders cited by the ld. AR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee as NRI during those years is not finally settled as pending before the Hon'ble Supreme Court. Now the said dispute of NRI status is finally settled and the order of the Hon'ble jurisdictional High Court has been upheld by the Hon'ble Supreme Court as pointed out by the Ld. AR which was not disputed by the Ld. DR. The Ld. CIT(A) has deleted this addition in para 4.3.3. to 4.3.4 as under:- 4.3.3 As regards the addition of the alleged balance in the ICICI Bank London vide his letter F.No.ACIT/CC- 3/2017-18/90 dt. 09.05.2017 the AO has informed that the UK tax authorities have not provided the copies of bank accounts of this account. On perusal of para- 4.1, table-1, of the assessment order the information available in respect of the five accounts is for the AYs 2005-06 to 2008-09 for the separate respective accounts (as mentioned in table-1 supra). Admittedly, there is bank statement for the period after the respective dates mentioned in table-1 (supra) and the balances have obviously no backing on any evidence. I have perused the assessment folder in 434 pages (correspondence side) and I could not find any bank statement of the impugned account with ICICI Bank London. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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