DCIT (IT) 2(2)(2), MUMBAI vs. HSBC BANK (MAURITIUS) LTD, MUMBAI

From the perusal of the above order of the Tribunal, it is evident that the Tribunal has considered the issue of assessee being beneficial ownership of the interest income. The Co-ordinate Bench in an unequivocal manner has held that the assessee is a ‘beneficial owner’ of the interest income. Undisputedly, the nature of interest income in assessment year under appeal is no different preceding assessment years. Ergo, we do not concur with the argument of ld. Departmental Representative that the Tribunal has not considered the fact in the past that the interest is not beneficially owned by the assessee. In the light of decision of the Co-ordinate Bench on the issue raised in the appeal by Revenue , we find no infirmity in the impugned order. The CIT(A) has granted relief to the assessee by following the order of Tribunal in (supra). The impugned order is upheld and the appeal by the Revenue is dismissed sans merit.

In the result, the appeal by the Revenue is dismissed.