Fixed-deposit interest addition remanded for fresh assessment after the assessee was denied a meaningful opportunity to present its case.

The addition relating to fixed-deposit interest was set aside because the assessee had not been given an effective opportunity before the Assessing Officer or the first appellate authority to distinguish its facts from the cited Supreme Court rulings. In these circumstances, the appellate order could not be sustained without allowing the assessee to present its case on facts and law. The matter was therefore remanded to the Assessing Officer for de novo assessment in accordance with law after granting a reasonable opportunity of being heard.

---

---

Issues: Whether the addition of interest income on fixed deposits required interference, and whether the matter should be restored for de novo assessment after granting reasonable opportunity to the assessee.

Analysis: The record showed that the assessee was not given an effective opportunity before the Assessing Officer or the first appellate authority to establish that its facts were distinguishable and that the controversy was not fully covered by the cited Supreme Court decisions. In these circumstances, the appellate order could not be sustained without affording the assessee an opportunity to place its case on facts and law. The matter therefore required fresh examination by the Assessing Officer in accordance with law.

Conclusion: The impugned appellate order was set aside and the addition was restored to the Assessing Officer for de novo assessment after granting reasonable opportunity to the assessee.

---