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TMI Blog2015 (1) TMI 434X X X X Extracts X X X X X X X X Extracts X X X X ..... to the above letter of the bank in the proceedings of the original authority or the Tribunal, but a reference about that portion of the findings of the CIT (Appeals) is found in the order of the Tribunal. The Tribunal was not in a position to consider this document, in the absence of the assessee/appellant and, therefore, it fell in error in coming to a conclusion that it is not a business income eligible for benefit under Section 80 HHC of the Act. - Matter remanded back - Decide din favour of assesse. - T.C.A. No. 541 of 2007 - - - Dated:- 6-1-2015 - R. Sudhakar And R. Karuppiah,JJ. For the Appellant : Mr. P. J. Rishikesh For the Respondents : Mr. M. Swaminathan JUDGMENT ( Delivered By R. Sudhakar, J.) Aggrieved ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Aggrieved by the said order of the Assessing Officer, the assessee preferred appeal before the CIT (Appeals). 3. The CIT (Appeals), allowed the appeal by treating the interest component earned from term guaranteed deposit and directed the Assessing Officer to treat the same as business income. Not being satisfied with the said order, the Department pursued the matter before the Tribunal. 4. Before the Tribunal, the appellant/assessee did not choose to defend the matter and, therefore, the Tribunal came to pass an exparte order holding that there was no record to show that the deposit was made for the purpose of availing credit facilities or that there was compulsion for making such deposit. The Tribunal also further observed that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 39;s letter makes it absolutely necessary for the appellant/assessee to make a term deposit of ₹ 15 Lacs for the purpose of availing credit facility. Therefore, for all purposes, the deposit so made by the appellant/assessee should be deemed to be a deposit made for the purpose of business and, therefore, the interest earned from such deposit should be treated as business income. 9. However, as is evident from the order of the Tribunal, the appellant/assessee did not pursue the matter sincerely before the Tribunal, but remained exparte. The appellant/assessee should have appeared before the Tribunal and explained the above position, which he had done before the CIT (Appeals) as is evident from the reasoning as reflected in the orde ..... X X X X Extracts X X X X X X X X Extracts X X X X
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