PUNYA STHALI TIRTH TRUST ,UTTAR PRADESH vs. ITO WARD (EXEMPTION) WARD 2 (4) , DELHI
आयकर अपीलीय अधिकरण
धिल्ली पीठ “एस एम सी”, धिल्ली
श्री धिकास अिस्थी, न्याधयक सिस्य
IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH “SMC”, DELHI
BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER
आअसं.7070/धिल्ली/2025 (नि.व. 2019-20)
Punya Sthali Tirth Trust,
Gang Nahar Road Murad Nagar,
Uttar Pradesh 201206
PAN: AABTP-8479-P
...... अपीलार्थी/Appellant
बिाम Vs.
Income Tax Officer, Ward (Exemption)-2(4),
R.No.2409, E-2 Block, Civic Centre, Minto Road,
New Delhi 110002
..... प्रनिवादी/Respondent
अपीलार्थी द्वारा/Appellant by : Shri C.S Anand, Ms. Vaishnavi Yadav &
Aastha Sharma, Advocates
प्रधििािीद्वारा/Respondent by : Shri Manoj Kumar, Sr. DR
सुिवाई की निथर्थ/ Date of hearing
:
15/12/2025
घोषणा की निथर्थ/ Date of pronouncement
:
15/12/2025
आदेश/ORDER
PER VIKAS AWASTHY, JM:
This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [in short ‘the CIT(A)’]
dated 26.09.2025, for Assessment Year 2019-20. 2. 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 2
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.
3. 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.
4. 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.
A bare reading of provisions of section 69A of the Act would show that the addition under said section can be made only where the assessee is found to be the owner of any money, bullion, jewellery or other valuable article and such money which is not recorded in the books of account, if any maintained by him for any source of income, and no explanation about the nature and source of acquisition of money is explained or explanation offered to the AO is not to the satisfaction of 3
the AO. In the instant case, the Assessing Officer has not doubted the source of Term Deposits in the bank. Once, the source of deposits in the bank have been accepted by the AO, interest on such term deposits could not have been added u/s.69A of the Act. Thus, the said addition is directed to be deleted. Hence, the addition of interest u/s.69A of the Act is liable to be deleted.
5. The next grievance of the assesee is that the AO has taxed interest income on maximum marginal rate instead of slab rate. Considering entire facts of the case,
I deem it appropriate to restore the issue back to the file of AO for re-examination and apply tax rate on taxable income, if any, in accordance with law.
6. In the result, appeal of the assessee is allowed, in the terms aforesaid.
Order pronounced in the open court on Monday the 15th day of December,
2025. (VIKAS AWASTHY)
न्यानयक सदस्य/JUDICIAL MEMBER
धिल्ली/Delhi, ददिांक/Dated 24/12/2025
NV/-
प्रतिलिपि अग्रेपििCopy of the Order forwarded to :
1. अपीलार्थी/The Appellant ,
2. प्रनिवादी/ The Respondent.
3. The PCIT/CIT(A)
4. ववभागीय प्रनिनिथि, आय.अपी.अथि., दिल्ली /DR, ITAT, धिल्ली
5. गार्ड फाइल/Guard file.
4
BY ORDER,
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(Asstt.