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TMI Blog2024 (5) TMI 1204X X X X Extracts X X X X X X X X Extracts X X X X ..... T(A) confirmed the addition of Rs. 3,87,075/- made by the Ld. Assessing Officer ("AO") on account of accruals/interest on foreign bank account balance in alleged HSBC Bank, Geneva and confirmed the penalty under section 271(1)(c) of the Income Tax Act, 1961 (the "Act") for concealment of particulars of income/furnishing inaccurate particulars of income qua the said addition respectively. These were heard together and are being disposed of by this common order. ITA No. 5450/Del/2016 The brief facts are that the assessee individual filed his return for AY 2012- 13 on 27.09.2012 declaring income of Rs. 3,71,04,136/-. His case was later selected for scrutiny. The assessment was completed on 27.02.2015 under section 143(3)/153A of the Act on t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 43 and this account remained undisclosed to the Income Tax Department. Therefore, the credit entries are also not disclosed as income in the returns of income filed, and * The A.O. has determined the accruals @ 4% p.a. on the balance in the HSBC account, at the beginning of the F.Y. 2007-08, prevailing interest rate in Europe. In view of the above, the arguments of the appellant are hereby rejected and therefore, I do not find any infirmity in the findings of the A.O. Accordingly, addition of Rs. 3,87,075/-, on account of accruals/interest on bank balance, is confirmed. " 2. The assessee is aggrieved and is in further appeal before the Tribunal and ground No. 1 and 2 reproduced hereunder relate thereto:- "1. That the CIT(Appeals) err ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 2.3 That the CIT(A)/ assessing officer failed to appreciate that (a) the above alleged foreign bank account did not belong to the appellant; (b) none of the deposits, as alleged, related to the appellant; and (c) no transaction was made by the appellant, and the above addition made in the hands of the appellant is without any evidence or basis. 2.4 That the CIT(A)/assessing officer erred on facts and in law, in making the aforesaid addition on suspicion and surmises and de-hors any material found/ seized during the course of search in the premises of the appellant. 2.5 That the CIT(A)/assessing officer erred on facts and in law in alleging that the appellant had intentionally concealed vital information by not signing the consent /d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpugned addition in AY 2012-13 and the order of the Ld. CIT(A) deserves to be vacated on the issue. 4. The Ld. CIT-DR relied on the order of Ld. AO/CIT(A). 5. We have considered the rival submissions and perused the records. It is manifest from the material available in the records that similar addition on account of notional interest on the alleged balance in foreign bank account has been made in AY 2008-09 to 2011-12 by the Ld. AO which have been sustained by the Ld. CIT(A). It is also apparent from the records that the assessee's appeal challenging the said addition(s) for the aforesaid AYs have been decided by the Tribunal in favour of the assessee by the order in ITA No. 4125 to 4128/Del/2016 dated 20.12.2019 by observing and recordi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee is on a much better footing vis-a-vis the facts in judicial precedents relied upon by the Ld. Counsel in as much as in the foresaid cases there was at least some basis of taxation of notional amount/interest, which was never realised/received by the assessee, but in the case of the assessee, the so-called amount of interest brought to tax is tally without any basis and is clearly hypothetical/imaginary. Since there is no evidence that the assessee actually received interest on the disputed deposit and just by figment of imagination it has been concluded that the assessee earned interest on such deposits @ 4% p.a., the impugned addition on account of notional ITA 2892 to 2894/D/2917 ITA 3952 to 3956/D/2017 interest has even on merits ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 006-07 by the Ld. AO could not be made in AY 2008-09 to 2011-12. The facts, circumstances and prevailing law admittedly remain the same in AY 2012-13 as well. Respectfully following the order (supra) of the Hon'ble Delhi High Court, we delete the impugned addition of Rs. 3,87,075/- made by the Ld. AO which has been sustained by the Ld. CIT(A) and decide the appeal of the assessee in his favour. 9. In the result, appeal of the assessee is allowed. ITA No. 3866/Del/2017 10. The appeal relates to levy of concealment penalty under section 271(1)(c) of the Act qua the addition of Rs. 3,87,075/- made by the Ld. AO and maintained by the Ld. CIT(A) on account of accruals/interest on foreign bank account balance in alleged HSBC Bank, Geneva perta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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