2023 (1) TMI 960 - AT - Income Tax
Addition of interest income - Appellant failed to furnish evidence to show that the aforesaid income has been offered to tax for the Assessment Year 2011-12 - HELD THAT:- The facts on record suggested that the interest income pertained to Assessment Year 2011-12. It was not the case of the AO that the Appellant was following cash basis of accounting in respect of interest income. To the contrary before CIT(A), the Appellant contended that interest income accrued during the previous year relevant to the Assessment Year 2011-12 and the interest income could not be taxed on receipt basis during the Assessment Year 2012-13. The CIT(A) did not deal with this contention and dismissed the appeal holding that the Appellant had failed to produce the loan confirmation and/or the uploaded return.
We note that CIT(A) has observed that a loan confirmation filed before ITO-34(3)(5), Mumbai which was forwarded to the Assessing Officer and on the basis of the same reassessment proceedings were initiated. Thus, loan confirmation for the Assessment Year 2011-12 issued by the husband of the Appellant was already on record. Though the Appellant did not file the loan confirmation, the same was available on record. Therefore, to this extent the finding returned by the CIT(A) and Assessing Officer are contrary to material on record.
The material on record suggested that the interest income did not pertain to Assessment Year 2012-13. Therefore, the onus shifted on Revenue, and the Revenue failed to bring on record any material to establish that the interest income pertained to Assessment Year 2012-13. Accordingly, we accept the contention of the Appellant that the interest income pertained to Assessment Year 2011-12 and delete the addition made by the Assessing Officer.