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TMI Blog2024 (1) TMI 103X X X X Extracts X X X X X X X X Extracts X X X X ..... demption of mutual funds - LTCG OR STCG - claim of the assessee that said mutual funds were sold by the assessee between the period of 01.04.2014 to 10.07.2014 and therefore, same should be subjected to long term capital gain being held for more than 12 months as provided u/s 2(42A) - HELD THAT:- In view of the highlighted portion of provision prescribing holding period of 12 months for treating sale of shares/mutual fund for Long Term Capital during the period of 1/04/2014 to 10/07/2014, we feel it appropriate to restore this issue back to the file of the Ld. Assessing Officer for verification of the date of the sale and then decide in accordance with law. The ground of appeal of the assessee is accordingly allowed for statistical purposes. Long-Term Capital Gain without providing the information collected directly by the AO to the assessee, when it is specifically requested by the assessee and instructed by the DRP also that all the information collected by the AO should be provided to the assessee - As addition was not part of the draft assessment order and no direction has been given by the Ld. DRP and therefore, while giving effect to the direction of the Ld. DRP the Ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stances of the case and in law:- 1. The Ld. AO/DRP erred in adding Rs. 98,204/- as interest from bank without appreciating that a sum of Rs. 1,04,468/- credited in bank during the year relates to earlier year i.e., A. Y 2014-15 interest and Rs. 6,265/- being credited in subsequent year but relates to the year under consideration. 2. The Ld. AO/DRP grossly erred in not appreciating the 26AS statements available before them which shows the date of credit and TDS deducted by the deductor. 3. The Ld. AO/DRP failed to appreciate the corrected computation submitted before them during the course of remand report proceedings and erred in adding Rs. 3,35,023/- as Short-Term Capital Gain. 4. The Ld. AO erred in adding Rs. 7,54,209/- as Long-Term Capital Gain without providing the information collected directly by the AO to the assessee, when it is specifically requested by the assessee and instructed by the DRP also that all the information collected by the AO should be provided to the assessee. 5. The Ld. AO erred in adding Rs. 61,58,276/- u/s 69A: - i. Investment in Franklin Templeton MF for Rs. 30,00,000/-il. ii. Investment in Birla Sunlife MF for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nting to Rs. 4,58,117/-. 3. Before us, the Ld. Counsel of the assessee filed a paper book containing pages 1 to 45 including documents at serial No. 6 to 9 (page No. 37 and 44) as additional evidence. 4. The ground No. 1 and 2 of the appeal of the assessee relate to interest of Rs. 98,204/- which was credited in the bank account for the year under consideration. The brief facts qua the issue in dispute are that in the return of income filed in response to the notice u/s 148 of the Act, the assessee has shown income from other sources at Rs. 4,72,445/- which included interest income from DBS Saving NRO account at Rs. 70,200/-. However, during the remand proceedings by the Ld. DRP, the Assessing Officer observed that interest amounting to Rs. 1,68,404/- was credited in said bank account and therefore, the Ld. DRP directed the Assessing Officer to tax the interest income from DBS Bank at Rs. 1,68,404/- as against Rs. 70,200/- declared by the assessee . Accordingly in the final assessment order, the Assessing Officer made addition for the difference amount of Rs. 98,204/-. 4.1 Before us, the Ld. Counsel for the assessee submitted that assessee is following mercantile system of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gly. 4. Kindly also appreciate as per provision of sec. 115G an nonresident Indian need not to file the return of income in India, if income consist of interest income and investment income and due tax has been deducted by the payer. Please note the bankers have deducted proper tax under sect 195 on the income of the assessee. So, AO as well the DRP both were erred in adding interest income of Rs. 1,04,468/ in the year under consideration i.e. 2015-16. which belongs to the earlier year i.e. A. Y 2014-15 and on which due tax has been deduced by the banker in earlier year also. 4.2 The Ld. DR on the other hand relied on the order of the lower authorities. 4.3 We have heard rival submission of the parties on the issue in dispute and perused relevant material on record. The dispute is in respect of interest amount which is appearing in the bank statement as credited on 01.04.2014 but not included by the assessee under the head income from other sources . The contention of the assessee are that said interest amount was already included by the assessee in the return of income filed for immediately proceedings assessment year i.e. assessment year 2014-15 following the merc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Trust of India established under the Unit Trust of India Act, 1963 (52 of 1963) or [a unit of an equity oriented fund]] [or a zero coupon bond], the provisions of this clause shall have effect as if for the words thirty-six months , the words twelve months had been substituted:] [Provided further that in case of a share of a company (not being a share listed in a recognised stock exchange) or a unit of a Mutual Fund specified under clause (23D) of section 10, which is transferred during the period beginning on the 1 st day of April, 2014 and ending on the 10 th day of July, 2014, the provisions of this clause shall have effect as if for the words thirty-six months , the words twelve months had been substituted:] 6 Provided also that in the case of a share of a company (not being a share listed in a recognised stock exchange in India), [or an immovable property, being land or building or both,] the provisions of this clause shall have effect as if for the words thirty-six months , the words twenty-four months had been substituted.] [Explanation I]. (1) In determining the period for which any capital asset is held by the assessee- in the case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... P. The addition being without any direction of the Ld. DRP, same is beyond scope of the final assessment order. The addition being not in accordance with law same is deleted. The ground No. 4 of the appeal of the assessee is allowed. 7. In ground No. 5, before us, the assessee has submitted that as under: a. The Ld. AO on page no. 9 of the final order added Rs. 30,00,000 as unexplained investment in Franklin Templeton MF. Kindly note there were two investments made of Rs. 30,00,000/- each in BNP Paribas MF on 30.04.2014 and Franklin Templeton M.F on 05.05.2014. At the time of making submission before the AO only one source of Rs. 30,00,000/- could be found and it was unclear whether it was for Franklin Templeton investment or BNP Paribas investment. So, the AO assume that the source was explained for BP Paribas and not for the Franklin Templeton so he has added as unexplained investments for Franklin Templeton MF. b. Now the assessee could find MF statement of Franklin Templeton MF which is appearing on page 37 of paper book where you will find that investment was made on 05.05.2014 and on the detail appearing above statement the advisor code and name of DBS bank is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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