Interest on Escrow FDs Taxable Despite Agreement Cancellation: ITAT Pune

Nalini Tukaram Nikam Vs ITO (ITAT Pune)

Interest on Escrow FDs Taxable Despite Agreement Cancellation, Real Income Theory Rejected—Interest Credited in Assessee’s Name Taxable in Full; No Deduction u/s 57(iii) Without Actual Expenditure to Earn Income; Escrow Agreement Cancellation Does Not Shift Tax Liability; ITAT Upholds Tax on Interest Credited Due to Bank Error—Real Ownership Decisive; No Jurisdictional Error Found—Assessment Order Upheld; TDS Credit Directed Despite Disallowance of Deduction; “Technical Glitch” Argument Fails—Bank Confirmation Insufficient to Es

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