2023 (5) TMI 632 - AT - Income Tax

Penalty u/s. 271(1)(c) - addition on account of interest on the balance standing in the foreign bank account of the Assessee - AO was of the view that the interest income has to be assessed on accrual basis in the relevant assessment years, wherein, the interest income accrued, thus added the interest income on accrual basis in assessment year 1998-99 and assessment years 2004-05 to 2011-12.

HELD THAT:- While deciding quantum appeals of the Assessee, contesting the addition of interest income on accrual basis, the Tribunal in assessment years 2006-07 to 2009-10 (2022 (8) TMI 950 - ITAT DEHRADUN] has deleted the additions made by the AO. In fact, Commissioner (Appeals) himself has deleted identical addition while deciding Assessee’s appeal for the assessment year 2009-10. As while deciding quantum appeals, the additions on account of interest income have been deleted, concluded that penalty imposed u/s. 271(1)(c) of the Act is unsustainable. Decided in favour of assessee.