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2021 (4) TMI 252 - ITAT DELHIAddition u/s 69 - undisclosed foreign bank account - addition being the peak balance of the alleged foreign bank account maintained with HSBC Bank Switzerland - AO computed interest @ 4% on the peak balance of the alleged foreign bank account and in subsequent years, such addition was made on the basis of such premises - HELD THAT:- A perusal of the table reproduced by the AO shows that the notional interest computed by the AO contains the name of the profile client which are "ASPREY WORLDWIDE S.A.". "RONDERBERG LTD." and "TAIRA FOUNDATION." These names claimed match with the names mentioned in the assessment order for the AY 2006-07, wherein, the addition was made on account of peak balance appearing in these bank accounts. It is also mentioned in the said order that the bank accounts are closed in FY 2005-06 on different dates. Find merit in the arguments of the learned counsel for the assessee that if these accounts were closed in FY 2005-06, then the question of computing any notional interest for the impugned assessment year does not arise - no interest income can be earned on a bank account during AY 2016-17 which stand closed in AY 2006-07. However, considering the totality of the facts of the case and in interest of justice, we deem it proper to restore the matter back to the file of the AO for adjudication of the issue afresh stating that the addition towards interest on outstanding credit balance in foreign bank account can only be made on the basis of some evidence/material. Addition cannot be simply made on the basis of presumption and surmises - Grounds raised allowed for statistical purpose.
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