Unreal Interest Income Cannot Be Taxed – ITAT Delhi Deletes ₹3.60 Cr Addition

Hemant Dhawan Vs ITO (ITAT Delhi) Delhi Tribunal decided whether notional interest income could be taxed where assessee never actually received the money. Assessee had booked units in a project “Oh My God” developed by M/s Alisa Infratech Pvt. Ltd. & paid ₹5 crores between FY 2013-14 & 2014-15. When developer defaulted, disputes arose & an MoU was signed on 04.04.2016 for repayment of ₹6.50 crores (₹5 crores booking refund + ₹1.50 crores compensation). Out of this, only ₹1.50 crores cheque cleared. The remaining ₹5 crores cheques bounced. Later, on 22.01.2018, devel...