Tribunal Orders Deletion of Addition u/s 68, Cites Lack of Interest Income and TDS in Return.

The ITAT partially allowed the assessee's appeal, directing the deletion of the addition under Section 68 of the IT Act. The Tribunal found the addition unsustainable as the return of income and computation showed no interest income or claimed TDS. Grounds 1, 3, and 4 were not adjudicated due to lack of submissions.

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Issues Involved:
The appeal against the order of Ld. CIT(A)-2, New Delhi dated 27.06.2019 for AY 2010-11.

Grounds of Assessee:
1. Challenge to the addition made by Income Tax Officer Ward 4(2) (AO) as illegal, unjust, and opposed to facts.
2. Error in assessment and confirmation of addition on a non-existent person.
3. Invalid service of notice by affixture on a non-existent person.
4. Illegality of notice u/s 148 due to lack of proper application of mind, issuance to a non-existent person, and incorrect foundation.
5. Erroneous assessment and confirmation of interest income when not earned or received.
6. Error in confirming addition u/s 68 of The IT Act without any such amount found in the books of account.
7. Request for annulment of illegal assessment and deletion of the addition.

Grounds 5 & 6:
The ld. AR argued that the interest income of Rs. 17,90,671/- was neither earned nor received during the year, as evidenced by audited financial statements. No such amount was credited in the books of account, hence no addition was warranted under u/s. 68 or any other provision of the Act.

Arguments and Decision:
The ld. Senior DR contended that the assessee received payment with TDS deducted, but the payee did not respond to the notice u/s. 133(6). However, the ld. AR clarified that no interest income was recognized and no TDS was claimed. The Tribunal found that the addition u/s. 68 was unsustainable as the return of income and computation showed no interest income or claimed TDS. Therefore, the addition was directed to be deleted.

Remaining Grounds:
No submissions were made on grounds 1, 3 & 4, leading to non-adjudication due to the absence of arguments.

Outcome:
The appeal of the assessee was partly allowed, with the direction to delete the addition.

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