Kamalbhai Babulal Kahar Vs ITO (ITAT Ahmedabad)
ITAT Ahmedabad held that addition u/s. 69 of the Income Tax Act towards unexplained investment unsustainable since assessee had explained the source of investment in FDs as being from his FD/OD account. Accordingly, matter remanded to CIT(A) for fresh adjudication.
Facts- Vide the present appeal, the appellant contested the addition made on account of interest income amounting to Rs.6,04,915/-. Notably, the assessee had earned interest income on term deposits of Rs.6,04,915/-, he had returned income only of Rs.3,01,958/- on the same. Assessee contested that since the FDRs. was in the joint-name of the assessee along with his wife, therefore, he had treated only 50% of the interest income as his.
Further, the appellant also contested the addition made to the income of the assessee on account of investment in FDRs, the sources of which remained unexplained amounting to Rs.8,82,546/-.
Conclusion- Held that taxability of interest income surely does not depended on the names in which term deposits have been made. It is the person who has made the investment to whom interest income is said to accrue irrespective of the fact in whose name the investment is made. Accordingly, we confirm the order of the ld.CIT(A).
