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TMI Blog2022 (7) TMI 952X X X X Extracts X X X X X X X X Extracts X X X X ..... sidered. Since the assessee has already offered the income being the interest received from the firm in the return of income filed, therefore, addition of the same again amounts to double addition. We, therefore, set aside the order of the learned CIT (A) on this issue and direct the Assessing Officer to delete the addition. So far as the profit from the firm is concerned, the assessee has already claimed the same as exempt u/s 10(2A) of the Act. Since the share of profit from the firm is exempt u/s 10(2A) of the Act, therefore, we modify the order of the learned CIT (A) and direct the Assessing Officer to delete the addition. Grounds of appeal No.1 3 raised by the assessee are accordingly allowed. - ITA Nos.553 & 554/Hyd/2021 - - - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... double taxation of the same amount by way addition to the income returned is and is superfluous impermissible both in law and on facts as Officer and explained both before the Assessing the Learned Commissioner of Income Tax (Appeals). 2. The assessment being unabated , In the absence of incriminating materials , no addition is called for. 3. As interest from ,firm in which the Appellant is a partner is made specifically assessable only u/s.28(v) of the 1.T.Act,1961, and ,hence, the taxing of the same u/s.115BBE is absolutely incorrect. For these and such other reasons that may be urged at the time of hearing it is prayed that the appeal may kindly be allowed. 3. At the outset the learned Counsel for the assessee did not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee has not furnished reply till date. Hence, the amount of Rs. 80,592/- is added to income returned as unexplained credit. 4.2 In view of the above, an amount of Rs. 80,592/- is added u/s. 68 of the IT Act. 4.3 Penalty proceedings u/s. 271(1)(c) read with Explanation 1 are initiated for concealment of income particulars. Addition Rs. 80,592/- 6. Before the learned CIT (A), the assessee submitted that the assessee has already declared the interest on capital from the partnership firm in the return of income and the share of profit from the firm is exempt u/s 10(2A) of the Act. Therefore, the action of the Assessing Officer is not justified. 6.1 However, the learned CIT (A) was not fully satisfied with the arguments advanced ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e AO in the instant case made an addition of Rs.80,592/- being the interest on capital received from the firm at Rs.64,058/- and net profit of Rs.16,534/- on the ground that the assessee did not furnish reply to his satisfaction. We find the learned CIT (A) although directed the assessee to furnish the details of share of profit at Rs.16,534/- and directed the Assessing Officer to consider the same and allow the addition, however, sustained the addition of Rs.64,508/- on the ground that the interest received from the firm on the capital deployed in the firm by the Partner has to be taxed in the hands of the Partner. A perusal of the computation statement filed along with the return of income by the assessee clearly shows that the income fro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rm of M/s. Maruthi Service Station, Naraspur made by the Assessing Officer and also in confirming the taxing thereof u/s.115BBE for the following reasons. 1. The learned Commissioner (Appeals) as well as the Assessing Officer overlooked the fact that the said amount of interest from the firm of M/s. Service Station Naraspur, in which the Appellant is a partner, amounting to Rs.80,592/-was already included in the income returned by the Appellant in the original return filed and also, in the return filed in response to notice u/s.153A . Hence, the double taxation of the same amount by way addition to the income returned is superfluous and is impermissible both in law and on facts as explained both before the Assessing Officer and the Lea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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