PUNYA STHALI TIRTH TRUST ,UTTAR PRADESH vs. ITO WARD (EXEMPTION) WARD 2 (4) , DELHI

Shri C.S Anand, appearing on behalf of the assessee submitted that the Assessing Officer (AO) has made addition of the interest income u/s.69A of the Income Tax Act, 1961(hereinafter referred to as ‘the Act’). The AO in assessment order has observed that on the interest income received from the bank, TDS amounting to Rs.96,816/- has been deducted. Once it is accepted that it is an interest income from the bank on which TDS has been deducted, no addition of such income could have been made u/s.69A of the Act. The assessee carried the issue in appeal before the CIT(A). The CIT(A) without appreciating the facts confirmed the addition made by AO. He further submitted that AO has taxed the total income determined at the maximum marginal rate instead of applying slab tax rate.

Per contra, Shri Manoj Kumar representing the department submitted that the assessee neither participated in assessment proceedings nor furnished any submissions before the CIT(A). The ld. DR supporting the impugned order prayed for dismissing appeal of the assessee.

Both sides heard, orders of the authorities below examined. The solitary issue in the instant appeal is taxability of interest income u/s.69A of the Act. It is an undisputed fact that the assessee has earned interest income on Term Deposits with Canara Bank during the period relevant to assessment year 2019-20. The AO has made enquiries from the Bank u/s. 133(6) of the Act. The Bank has confirmed that Term Deposits are from rollover of old term deposits. The AO has not raised any doubt over the source of term deposits. The bank has deducted tax at source Rs.96,816/-on interest income. The AO made addition of the interest income received by the assessee u/s.69A of the Act.