2019 (4) TMI 546

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.... through his order dated 03.04.2017 has erred in passing that order in contravention of the provisions of S. 250(6) of the Income Tax Act, 1961. 2. That on the facts, circumstances of the case and in law, the Worthy CIT(A) has erred in confirming the action of Ld. AO wherein he had erred in not allowiung deduction u/s 80IC on interest income of Rs. 1,36,856/- even when such income is derived from the fixed deposits held as security with various government authority pertaining to business activity. 3. That on the facts, circumstances of the case and in law, the Worthy CIT(A) has erred in confirming the action of Ld. AO wherein he had erred in making addition of Rs. 15,75,000/- to the appellant's income on account of all....

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....re the disposal of the same. 3. Ground No.1 : Ground No.1 is general in nature and does not require any specific adjudication. 4. Ground No. 2 : Vide ground No.2, the assessee has agitated the action of the lower authorities in denying deduction u/s 80IC of the Income-tax Act, 1961 (in short 'the Act') on interest income of Rs. 1,36,856/-. 5. At the outset, the Ld. Counsel for the assessee has submitted that the assessee inadvertently mentioned in the return of income the said receipt as 'interest from FDRs' whereas, the same was received as interest from partners of the assessee firm. He has further submitted that the assessee during the year also paid some interest to the other partners on their capital. He, therefore, ha....

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....nt was credited to the account of M/s MBH Traders from other proprietorship concern of the assessee. He, therefore, has submitted that the assessee has explained the source of deposits. 10. On the other hand, the Ld. DR submitted that though the assessee has tried to show that the amount has been credited from proprietorship concern, however, the creditworthiness of the proprietorship concern has not been proved. 11. Considering the overall facts and circumstances of the case, I am of the view that the matter needs examination and verification at the hands of the Assessing officer. The assessee will demonstrate before the Assessing officer the source and creditworthiness of the creditor including the source of the deposits in the prop....