The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has upheld the addition of interest on fixed deposits (FDs).The two-member bench of Anubhav Sharma (Judicial Member) and N.K. Billaiya (Accountant Member) has observed that the 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...
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has upheld the addition of interest on fixed deposits (FDs).
The two-member bench of Anubhav Sharma (Judicial Member) and N.K. Billaiya (Accountant Member) has observed that the 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 bank and ask for duplicate fixed deposits.
The appellant/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 part of the Smiths Group, a UK-based business conglomerate that manufactures and trades security equipment.
The issue raised was in respect of the addition of interest on fixed deposits amounting to Rs. 8,57,074.
The assessee contended that the assessee misplaced the fixed deposits and, as capital assets, has written off the same. Therefore, there is no question of earning any interest income.
The Tribunal noted that the contention of the assessee that the FD was misplaced was not only illogical but also unacceptable.
The tribunal upheld the addition made by the Assessing Officer.
Case Title: Smiths Detection Asia Pacific Pte Ltd Versus The Dy. C.I.T
Citation: ITA No. 2258/DEL/2022
Date: 22.02.2023
Counsel For Appellant: Himanshu Sinha
Counsel For Respondent: Sukesh Kumar Jain