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2023 (9) TMI 1111 - ITAT MUMBAIAddition on account of interest income - AO worked out interest income of the assessee by applying the rate of interest @12% for the whole year that came and held that the assessee has suppressed interest income - AO levied tax under the provisions of section 115BBE on the said undisclosed investment - HELD THAT:- From the ledger accounts reproduced in the assessment order, it is very clear that the assessee has lent the loan after October, 2017 on various dates and that interest is calculated considering the number of days for which the loan was advanced. Given this, we are unable to understand or appreciate why despite reproducing all the details the AO proceeded to calculate interest for the whole assessment year. Since it is evident from the details submitted by the lower authorities that the assessee has obtained the loan from DHFL only in October 2017 and has advanced the same to various parties out of the said loan, we see no logic in AO calculating interest for the whole year. Therefore we hold that there is no infirmity in the findings of the CIT(A) deleting the addition towards interest. This ground of the revenue is dismissed. Addition u/s 69B - advances outstanding include the interest accrued net of TDS - difference between advances outstanding as of 31/03/2018 and loan balance as on the said date - HELD THAT:- As also clear that the amount of outstanding advances includes the interest accrued on the advance net of TDS. In the order of assessment, we notice that the Assessing Officer has not considered any of the submissions but has simply calculated the difference between advances outstanding as of 31/03/2018 and loan balance as on the said date to make an addition under section 69B. We are unable to appreciate the action of the AO for the reason that assessee has clearly explained and provided a proper reconciliation for the amounts shown in the balance-sheet as on 31.03.2018 and the addition has been made without giving finding contrary on record. Accordingly, addition made u/s 69B by AO is not tenable. We, therefore, see no reason to interfere with the order of the CIT(A) in this regard. Accordingly, this ground of the revenue is dismissed.
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