ACIT, Central Circle-26, New Delhi Vs Anurag Dalmia, New Delhi

The Assistant Commissioner of Income Tax appealed against an order by the CIT(A) which deleted an addition of over £1.7 million. This addition represented undisclosed interest income earned on foreign bank account deposits for the assessment year 2014-15. The Assessing Officer had added this income under Section 69 of the Income Tax Act. However, the CIT(A) deleted the addition, following previous decisions for earlier assessment years.

INCOME TAX APPELLATE TRIBUNAL 
DELHI BENCH “A”: NEW DELHI 
BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER 
AND 
SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER 
(Through Video Conferencing) 

ITA No. 6542/Del/2017 
(Assessment Year: 2014-15)

ACIT, Central Circle-26, New Delhi
(Appellant)

Vs.

Anurag Dalmia, 2nd Floor, Indraprakash Building, 21 Barakhamba Road, New Delhi
(Respondent)

Revenue by : Shri R. K. Gupta, Sr. DR
Assessee by: Shri V. K. Bindal, CA Mrs. Rinki Sharma, Adv
Date of Hearing : 20/10/2020
Date of pronouncement : 22/10/2020

O R D E R 

PER PRASHANT MAHARISHI, A. M.

1. This is an appeal filed by THE ASSISTANT COMMISSIONER OF INCOME TAX, Central Circle – 26, New Delhi against the order of the ld CIT(A)-29, New Delhi dated 25.08.2017 for the AY 2014-15 wherein addition made by the learned assessing officer of Rs 1 78,28,485/– being income on account of undisclosed interest income earned on undisclosed foreign bank account deposits u/s 69 of The Income Tax Act made by the learned assessing officer as per order u/s 143 (3) of The Income Tax Act dated 31 August 2016 was deleted. Thus the revenue is aggrieved.

2. The revenue has raised the following grounds of appeal:-

“1. Whether the ld CIT(A) was right in rendering addition made in the hands of the appellant infructuous on the basis of similar addition in the hands of the appellant for the earlier years at CIT(A) level when the addition has not reached finality and should have been held protectively in the hands of the assessee. 
2. That the grounds of appeal are without prejudice to each other.”

3. Brief facts of the case shows that assessee is an individual. During the year under consideration the assessee has derived income from salary, capital gain and income from other sources. The assessee has filed his return of income on 29/7/2014 declaring income of ₹ 9,923, 350/–. It is required to be noted that in assessment year 2012 – 13 the closing balance of the alleged foreign bank account including interest was US dollar 70,30,337.82 as on 31st of March 2012 which became the opening balance for the assessment year 2013 – 14 and the AO also estimated earned interest income on this sum from 1/4/2012 231/3/2013 for 12 months at the rate of 4% amounting to Rs 1 53,00,826.54, the closing balance of the foreign bank account for the assessment year 2013 – 14 including interest was US dollars 73,11,551.25 as on 31st of March 2013 which became the opening balance for the assessment year 2014 – 15 and the assessee also earned interest income on this sum from 1 April 2013 2/31 of March 2014 at the rate of 4% amounting to Rs 1 78,28,485. The learned assessing officer prepared a chart. He further held that the above interest income has not been disclosed by the assessee to the Department therefore the same is being added to the income of the assessee for the assessment year 2014 – 15 as undisclosed income u/s 69 of the income tax act. Accordingly the total income of the assessee was assessed at Rs 277,51,835/– against the returned income of ₹ 9,923,350/– as per order u/s 143 (3) of the act dated 31st of August 2016.

4. Assessee aggrieved with the order of the learned AO preferred an appeal before the learned CIT – A wherein he deleted the addition following his own order for assessment year 2006 – 07 and 2007 – 08. He held that it is a national interest on the amount of alleged offshore bank account with the HSBC bank Geneva. Therefore the learned assessing officer is aggrieved with this order and has preferred this appeal before us.

To know more in details find the attachment file