Latest Income-Tax Details

For Full Access To All Latest Judgments on Income Tax
Click Here To Subscribe Now
Take a tour of our Income-Tax Library

The assessee owns a property in DLF, Phase-II, Gurgaon against which he has received a security deposit of Rs. 5 ,29,55 ,200/-for leasing the premises. During the year, the no rent has been offered to tax and on enquiry, it was found that the said property has been sold for Rs. 2.75 crores in the year 2013-14, hence no income from rentals has bee offered.However, the assessee continued to hold the security deposit of Rs. 5.29 crores. The Assessing Officer held that since the security deposit is an underlying asset and an interest amount deemed to have derived from such security deposit of Rs. 63 ,54,632/- has been brought to tax under the head “income from other sources”.The ld. CIT (A) confirmed the addition on the grounds that the assessee is benefited by way of having the deposit still lying with him.Aggrieved the assessee filed appeal before the Tribunal.

Shanti Prime Publication Pvt. Ltd.

Section 4 of the Income Tax Act, 1961—Income - In order to tax any amount, the revenue has to prove that the amount as indeed been earned by the assessee and only the incomes fall under the deemed provisions which have been explicitly mentioned in the Income Tax Act can only be brought to tax under the deeming provision but not any other notional or hypothetical income not envisaged by the Act, therefore, it was directed that the addition made by AO on account of notional income on the security deposit cannot be held to be legally valid. - HARVANSH CHAWLA V/s ASSTT. CIT - [2020] 82 ITR (TRIB) 160 (ITAT-DELHI)