Smiths Detection Asia Pacific Pte Ltd Vs DCIT (ITAT Delhi)
ITAT Delhi held that addition of interest income on fixed deposit with Canara Bank sustainable as contention of the assessee that fixed deposit is misplaced and hence there is no question of earning any interest income is illogical.
Facts- The Assessing Officer noticed that as per Form 26AS, the assessee has received interest income of Rs. 71,51,535/- from Canara Bank. However, interest of Rs. 62,94,461/-has been declared by the assessee. The Assessing Officer, accordingly, made addition of Rs. 8,57,074/- and concluded the assessment proceedings.
Conclusion- We are of the considered view that this contention of the ld. counsel for the assessee is not only illogical, but also unacceptable. The Canara Bank in Form No. 26AS has acknowledged the Fixed Deposits with it and has credited interest by deducting tax at source. Even if the Fixed Deposits are misplaced, the assessee can approach the Canara Bank and ask for duplicate Fixed Deposits. We do not find any error or infirmity in the addition made by the Assessing Officer and the same is upheld.
FULL TEXT OF THE ORDER OF ITAT DELHI
This appeal by the assessee is preferred against the order dated 18.07.2022 framed u/s 143(3) r.w.s 144C(13) of the Income-tax Act, 1961 [hereinafter referred to as ‘The Act’] pertaining to Assessment Year 2019-20.
2. Though the assessee has raised as many as 7 grounds of appeal, but the sum and substance of the grievance of the assessee relates to the taxability of offshore supply of equipment under the Act and taxability of offshore supply of equipment under the India-Singapore Double Taxation Avoidance Agreement [DTAA].
3. Briefly stated, the facts of the case are that the assessee company is incorporated under the laws of Singapore and is a tax resident of Singapore, within the meaning of Article 4 of the DTAA between India and Singapore. The assessee is a part of UK based business conglomerate – Smiths Group and is engaged in the business of manufacturing and trading of security equipment manufacturing and trading of security equipment.
4. The assessee filed its return of income on 30.11.2020 declaring total income of Rs. 3,50,02,980/- at special rates and a loss of Rs. 1,11,62,442/- and claimed exempt income of Rs. 1,04,55,60,800/- on account of supply of offshore equipments.
5. During the year under consideration, the assessee declared the following receipts in its return of income:
