ALOK JOSHI,UTTRAKHAND V. INCOME TAX OFFICER (IT)-3(1)(1), MUMBAI

ITA 1247/MUM/2025

AI Insights

The case involves Alok Joshi, a non-resident Indian, who appealed against the order of the Commissioner of Income Tax (Appeals) which upheld the additions made by the Assessing Officer regarding interest and dividend income. The interest was earned from a Non-Resident External (NRE) bank account and the dividend was received from an unspecified source. The primary legal contention was whether these incomes were exempt under the relevant sections of the Income Tax Act. The Tribunal admitted additional evidence provided by the assessee, which substantiated the claim for exemption of the interest income but not the dividend income.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 313082 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-04-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2008-2009
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: VIJAY KR. G. SUBRAMANYAM
• Assessee Lawyers: NEHNI SINGHVI AW PRAJAKTA JAIN
• Keywords: Additional evidence

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, ‘SMC’ BENCH MUMBAI BEFORE: SHRI PAWAN SINGH, JUDICIAL MEMBER ITA No. 1247/MUM/2025(AY: 2008–09) (Physical hearing) Alok Joshi F-402, Windlass Residency, Curzon Road, Dalanwala, Uttarakhand, 248001. Vs. Income Tax Officer (IT)-3(1)(1) 608, Kautilya Bhavan, G-Block, BKC, 400051. PAN: ABXPJ1839N (Appellant) .. (Respondent) Assessee by Ms. Nehni Singhvi a/w Ms. Prajakta Jain Revenue by Shri. Vijay Kr. G. Subramanyam, Sr. DR Date of Hearing 21/04/2025 Date of Pronouncement 28/04/2025 Order under section 254(1) of Income Tax Act PER PAWAN SINGH, JUDICAIL MEMBER, 1. This appeal by the assessee is directed against the order of Learned Commissioner of Income Tax (Ld. CIT(A)) dated 02.10.2025 for A.Y. 2008-09. The assessee has raised the following grounds of appeal: “ Ground No. 1 On the facts and circumstances of the case and in law, the Id. Commissioner of Income Tax (Appeals)-57. Mumbai, erred in upholding the addition by the AO on account of interest income from Non-Resident External (NRE) bank account amounting to Rs.62,933/-, which is exempt u/s 10(4) of Income Tax Act. Ground No. 2 On the facts and circumstances of the case and in law, the Id. Commissioner of Income Tax (Appeals)-57, Mumbai, erred in upholding the addition by the AO on account of dividend of Rs.412/-, which is exempt u/s 10(34) of Income tax Act. The Appellant craves leave to add, alter, amend, modify, substitute, delete and/or rescind all or any of the Grounds of Appeal on or before the final hearing, if necessity so arise.” ITA no. 1247/MUM/2025 Alok Joshi 2 2. Rival submissions of both the parties have been heard and record perused. The Learned Authorized Representative (Ld. AR) of the assessee submits that assessee has filed application for admission of additional evidence under Rule 29 of Income Tax (Appellate Tribunal Rules 1963). The Ld. AR of the assessee submits that the assessee is a non-resident Indian. The assessee is maintaining Non-Resident External Account (NRE). The assessee earned interest of Rs. 62,933/- which is claimed as exempt under section 10(4)(ii) of the Income Tax Act (Act). The assessee also earned/received dividend of Rs. 412/- which is exempt under section. 10(34) of the Act. During the first appellate stage, the assessee could not submit such bank statement showing the receipt of interest in NRE account. The assessee has now obtained the bank statement showing such interest income. The banker of assessee has also confirmed such fact in a communication to the assessee. In the bank statement, the entry of interest is clearly reflected. The assessee received interest 02.10.2007 of Rs. 20,975/- and interest of Rs. 41,957/- on 31.03.2008. The assessee has also filed confirmation from assessee’s banker i.e. NatWest Markets Plc which was formally known as Royal Bank of Scotland Plc. Such evidence is already placed on record. The ld AR of the assessee submits that additional evidence filed by assessee is essential for complete adjudication and determination of real controversy between the assessee and the revenue. The Ld. AR of the assessee submits that assessee has certified such bank statement. Such a statement can be verified by the lower authorities. The ld AR of the assessee prayed that additional evidence filed by the assessee may be allowed and may be considered while deciding the appeal. ITA no. 1247/MUM/2025 Alok Joshi 3 3. On merit, the Ld. AR of the assessee submits that lower authorities have denied relief to the assessee for the want of evidence. The Ld. AR of the assessee submits that after admissions of additional evidence, the assessee may be allowed a relief. 4. On the other hand, the Learned Senior Departmental Representative (Ld. DR) for the revenue submits that bench may take appropriate view to admit the addition evidence, provided the assessee to fulfill the requisite condition for admission of such additional evidence. On merit, the Ld. DR for the revenue submit that no such evidence was filed before lower authority therefore, in case the addition evidence is admitted, the matter may be restored back to the Assessing Officer (AO)for the verification of such evidence. 5. I have considered the rival submissions of both the parties and have gone through the orders of lower authorities. Firstly, I shall consider the admission of additional evidence. I find that assessee has filed copy of bank statement showing the relevant entry of interest received in his NRE Bank Account. Considering the relevancy of fact, the additional evidence filed by assessee is admitted. Further, considering the fact that a very short issue is involves in the present appeal which relates to addition on account of interest received in NRE bank account, therefore, instead of sending matter back, no purpose would serve to restore the matter for such verification. I find that assessee is maintaining NRE bank account and NatWest Markets Plc which was formally known as Royal Bank of Scotland Plc. The interest income is clearly reflected in the said bank statement that is interest of Rs. 20,975/- as on 02.10.2007 and of Rs. 41,957/- as on 31.03.2007. Such interest income is exempt under section. ITA no. 1247/MUM/2025 Alok Joshi 4 10(4)(ii) of the Act, hence the addition of interest such interest income is deleted. So far as dividend income of Rs. 412/- is concerned, no evidence is filed by the assessee, hence, such addition is confirmed. In the result, ground No. 1 of the appeal is allowed and ground No. 2 is dismissed. 6. In the result, the appeal of the assessee is partly allowed. Order pronounced in open court on 28.04.2025. Sd/- (PAWAN SINGH) JUDICIAL MEMBER Mumbai; Dated 28/04/2025 Anandi Nambi, Steno Copy of the Order forwarded to: BY ORDER, (Asstt. Registrar) ITAT, Mumbai 1. The Appellant 2. The Respondent. 3. CIT 4. DR, ITAT, Mumbai 5. Guard file. "