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2021 (8) TMI 743 - AT - Income TaxAssessability of the interest income accruing/arising from the funds that were deposited in the foreign bank account - unexplained funds invested in foreign bank account - claim of the assessee that the entire funds in the aforesaid foreign bank account were deposited by her mother, and thus, she only being a nominee - HELD THAT:- Tribunal while disposing off the appeals in the case of the assessee‟s mother, viz. Mrs. Pushpa N. Khimji [2019 (4) TMI 2003 - ITAT MUMBAI], had observed, that the amounts deposited in the bank account with HSBC Bank, Zurich, belonged to Mrs. Pushpa N. Khimji (supra), and the same were received by her by way of inheritance on the death of her husband on 15.07.1988 Now when the deposits lying in the foreign bank account in question are undisputedly held to be belonging to and owned by Mrs. Pushpa N. Khimji, then, the interest income arising therefrom without any choice have to be brought to tax in her hands only. In case the interest income accruing/arising on the funds lying in the aforesaid bank account are divorced from the person who owns the said funds, then, the same, in our considered view would lead to incongruous results that would had never been intended by the legislature. Our aforesaid conviction is in fact fortified by the fact that the legislature in all its wisdom had in order to plug any diversion of income without there being any transfer of income yielding asset/source had specifically in Chapter V – Sec. 60 to 65 of the Act provided for circumstances wherein income from revocable transfers would be related back and clubbed in the hands of the transferor. Deposits lying in the bank account in question with HSBC bank, Zurich undisputedly belong to and are owned by the assessee‟s mother, viz. Mrs. Pushpa N. Khimji. Although, it is a matter of fact borne from the record that the assessee as a joint holder of the aforesaid foreign bank account had all the rights of functional operations of the said account, but the same would by no means justify relating of any part of the interest income on such funds/deposits lying in the said foreign bank account in the hands of any other person except for the owner of said funds, viz. Mrs. Pushpa N. Khimji. Accordingly, in the backdrop of our aforesaid deliberations not being able to persuade ourselves to accept the view taken by the CIT(A) that 50% of the interest income i.e an amount of ₹ 93,528/- (50% of ₹ 1,87,056/-) was liable to be brought to tax in the hands of the assessee, we, thus, set-aside his order to the said extent and vacate the addition of ₹ 93,528/- that was sustained by him. The Grounds of appeal is allowed.
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