2021 (7) TMI 43

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....his common order for the sake of convenience and brevity. 3. The common grievance in all these appeals relates to the levy of penalty u/s. 271(1)(c) of the Income-tax Act, 1961 [hereinafter referred to as 'The Act']. The common ground on which penalty has been levied is the addition of notional interest in HDFC Bank account. 4. The dispute relating to the quantum addition travelled upto the Tribunal and the Tribunal in MA Nos. 780 to 783/DEL/2019 arising out of ITA Nos. 4125 to 4128/DEL/2016 by order dated 20.12.2019 has deleted the quantum addition. The relevant findings of the coordinate bench read as under: "8. With regard to the taxation of notional interest @4% added by the Assessing Officer, we find that the sim....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... estimate and presumption is not sustainable. 6.3 In support of the aforesaid ground, the Ld. CIT-DR/Departmental Representative heavily relied on the order of the assessing officer and contended that the addition of Rs. 1,64,962/- made on account of interest should be confirmed and the finding of the CIT(A) to this extent should be reversed. In rebuttal, the Ld. Senior Counsel vehemently argued that the addition on account of notional interest has been rightly deleted by Ld. CIT (A) since the said addition was made by the assessing officer in the absence of any bank statement or any other documents, merely on the basis of presumption that interest @4% p.a. would have been credited on the balance in the account, without even first ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....arties. We have already deleted the addition made in assessment year 2006-07 and also in assessment year 2007-08, therefore, on this ground itself the addition made by the assessing officer is liable to be deleted. Independent thereof, we note that in the instant case, the addition of Rs. 1,64,962 has been made purely on notional basis on the premise that the assessee: (a) had alleged foreign bank account, which itself is under serious challenge; and (b) on such bank account, assessee earned interest @ 4%. We are of the view that the case of the assessee is on a much better footing vis-à-vis the facts in judicial precedents relied upon by the Ld. Counsel inasmuch as in the aforesaid cases there was at least some basis of taxation of ....