9911796707
TMI Blog2022 (3) TMI 1283X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the date of service of notice on the assessee. In the absence of the factum of service of notice, the contentions raised by the assessee has substance and in our view, the request of the assessee is justified that he ought to have been heard by the ld. CIT(A) before any adverse inference was drawn by not only issuing notice but by way of bringing the acknowledgment of service of notice on record. We are of the considered opinion that the appeal should be set aside to the file of the CIT(A) as there is violation of principles of natural justice. The assessee is directed to appear before the ld. CIT(A), take notice and thereafter co-operate in disposal of the appeal - Appeal of the assessee is allowed for statistical purposes. - I.T.A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pite several opportunities granted, the assessee failed to submit the details of income earned that was eligible for the claim of deduction. The AO may allow the income of the assessee that is earned from its business activity of providing credit facilities to its regular members, having equal voting rights and dividend rights, if any. The appeal of the assessee on this ground is partly allowed. .. . 8.6 However, other income earned on investments / deposits, other than in SB accounts and co-operative society(s), is to be assessed as Income from other sources . Interest/income earned on such investments is not from the business carried on, on the principle of mutuality by the co- operative society, but ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s to its members. Expenditure directly linked to earning income from other sources would be allowable and not expenditure related to the earning of business income. 8.9 Therefore, while giving effect to this order, the AO will verify and allow expenditure wholly and exclusively incurred to earn income from other sources, if any, and not expenditure incurred for the purpose of business. During appellate proceedings, the assessee mentioned that income was declared on a receipt basis and the assessee was asked to submit details of accrued income, including investments and deposits, but the assessee was unable to do. The AO is asked to verify the same. The assessee had also failed to submit details of tax deducted at source on the pay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT(A) has passed an ex-parte order qua the assessee. However, the ld. CIT(A) has mentioned several dates on which the case was fixed for hearing, where the assessee failed to appear before the ld. CIT(A). It is seen that the ld. CIT(A) has mentioned the dates of fixation of hearing but he has not mentioned the date of service of notice on the assessee. In the absence of the factum of service of notice, the contentions raised by the assessee has substance and in our view, the request of the assessee is justified that he ought to have been heard by the ld. CIT(A) before any adverse inference was drawn by not only issuing notice but by way of bringing the acknowledgment of service of notice on record. 7. In view of the above discussion, w ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
