The Income Tax Appellate Tribunal (ITAT) Hyderabad has dismissed an appeal by the revenue department wherein it ruled that being a joint account holder in husband’s Salary Account does not classify as Undisclosed Foreign Account. The appeal was against a Tribunal order wherein the Revenue’s appeal was to attract clause (d) of Para 10 of the CBDT Circular No.3 of 2018 dated 11.7.2018 but was dismissed on account of low tax effect.
The Assessee, Smt. Ayesha Abid Ali’s husband had an account with HSBC Bank which was opened by his employer for the purpose of salary deposit.The revenue found out in his assessmentthat the assessee was the joint account holder and had accordingly earned interest income from there.The Counsel for the assessee, Sri Mohammed Siddiq Ali, submitted that the Commissioner of Income Tax (Appeals) (CIT (A)) has granted relief to the assessee on the ground that the assessee is only a housewife and did not have any independent source of income and that the estimated interest income from HSBC Account needs to be considered in the hands of the assessee’s husband as he is credited his salary income.
Judicial Member P. Madhavi Devi and Accountant Member Laxmi Prasad Sahu while dismissing this miscellaneous application by the revenue held, “Having regard to the rival contentions and the material on record, we find that the Assessing Officer has made the addition in the hands of the assessee of interest income from an A/c with HSBC held by the assessee jointly with her husband which was opened by his employer to deposit his salary income. Therefore, it is not an undisclosed foreign a/c of the assessee and therefore, the exception (d) to the circular will not apply. Therefore, this M.A is dismissed.”
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