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2020 (5) TMI 549 - AT - Income TaxNon-admittance of the appeal by the CIT(A) - tax liability arising on account of returned income has not been paid by the assessee - HELD THAT:- Assessee is deceased and the appeal is represented by the legal heir of the assessee. Admittedly, the taxes were not paid by the assessee alongwtih return of income; though repeated pleas, were raised before the authorities below to sell the gold ornaments seized and adjust the sale proceeds against the tax payable by the assessee, but no such exercise was carried out by the Department. Thereafter, the assessee claims that she sold house property and paid the taxes due with interest on returned income before her death during 18.03.2015 to 12.08.2015. Thus especially where the assessee had demised, it is deemed fit to admit the appeals of the assessee and decide the issue on merits. We do not find any merit in setting aside the issue to the CIT(A) and proceed to decide present appeals. Disallowance of bank charges as expenses while calculating the interest income for the respective years - claim of bank charges debited by the foreign bank account maintained by the assessee with HSBC Bank, Switzerland - HELD THAT:- The Hon’ble Supreme Court in the case of Seth R.Dalmia vs CIT [1977 (9) TMI 1 - SUPREME COURT] was held that “for allowability of such deduction, the dominant purpose of the expenditure incurred must be to earn income. The connection between the expenditure and the earning of income need not be direct; even an indirect connection could prove the nexus between the expenditure incurred and the income.” The claim of the assessee has been allowed in succeeding years 2010-11 & 2011-12 by the CIT(A) against which no appeal has been filed by the Revenue. We hold that the assessee has merit in her claim; the bank charges being related to the interest income are duly allowable as expenditure in the hands of the assessee. Accordingly, we hold so. AO is directed to allow the deduction on account of bank charges against the interest income assessed in the hands of the assessee. - Decided in favour of assessee.
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