Tribunal upholds deletion of interest & deposits, cites lack of evidence & NRI status.

The Tribunal upheld the CIT(A)'s deletion of additions related to interest received in the Ilora account and unexplained deposits in ICICI Bank London due to lack of material evidence and the assessee's NRI status. The Revenue's appeal was dismissed, with the order pronounced on 21/09/2021.

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Issues Involved:
1. Deletion of addition on account of interest received in Ilora account.
2. Deletion of addition on account of unexplained deposits in ICICI Bank London.

Issue-wise Detailed Analysis:

1. Deletion of addition on account of interest received in Ilora account:

The Revenue contested the deletion of Rs. 6,51,158/- added by the Assessing Officer (AO) due to interest received in the HSBC Geneva bank account. The Tribunal noted that the AO computed interest based on the last known balance in May 2006, without any evidence of the account's status in the subsequent years, particularly for the year under consideration. The AO's addition was based on presumptive interest income without any bank statements or material evidence. The CIT(A) deleted the addition, noting the absence of bank statements post-February 2007 and the lack of evidence for interest credited even for the period up to February 2007. The CIT(A) emphasized that the AO's computation was presumptive and based on an arbitrary interest rate of 4%, without any basis or material evidence. The Tribunal upheld the CIT(A)'s decision, referencing earlier Tribunal orders for AYs 2006-07 to 2009-10 and 2012-13, which had similarly deleted such additions due to lack of evidence and the assessee's NRI status affirmed by the Hon’ble Delhi High Court and the Supreme Court.

2. Deletion of addition on account of unexplained deposits in ICICI Bank London:

The Revenue also contested the deletion of Rs. 5,70,24,638/- added by the AO for unexplained deposits in ICICI Bank London. The Tribunal noted that the AO made the addition based on the opening balance in the account, which was added to the income in the relevant AYs but was unsure about the year of the deposits. The AO admitted the lack of bank statements for the relevant period and relied on presumptive additions. The CIT(A) deleted the addition, noting the absence of bank statements and evidence for the balances post the mentioned periods. The Tribunal upheld the CIT(A)'s decision, referencing earlier Tribunal orders for AYs 2006-07 and 2007-08, which had similarly deleted such additions due to lack of evidence and the assessee's NRI status affirmed by the Hon’ble Delhi High Court and the Supreme Court.

Conclusion:

The Tribunal upheld the CIT(A)'s deletion of additions on both accounts due to the lack of material evidence and the assessee's NRI status. The Revenue's appeal was dismissed. The order was pronounced in the open court on 21/09/2021.

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