2022 (7) TMI 952

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....mmon order. ITA No.553/Hyd/2021 - A.Y 2016-17 2. The grounds raised by the assessee in this appeal are as under: "Addition of interest of Rs.80,592/-receivable from firm already included in the income returned and taxed u/s.115BBE The learned Commissioner of Income Tax (Appeals) is not justified in confirming the addition of interest receivable from firm 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/-....

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....and style of M/s. Jaidevi Jewellers and Jawanmal Gulabchand Bankers respectively at Narsapuram where he is proprietor. He is also a Partner in Maruthi Service Station. The Assessing Officer completed the assessment u/s 153A on 21.4.2021 determining the total income at Rs8,96,522/- wherein he made an addition of Rs.80,592/- to the returned income of Rs.8,15,930/- filed u/s 153A by observing as under: "4. Interest credited to capital: 4.1 On verification of the capital account furnished by the assessee during assessment proceedings, it is seen that an amount of Rs. 80,592/- is credited with narration " M.S Interest received - Rs. 64,058/- and M.S Net Profit- Rs. 16,534/-" . During the course of assessment, the AR vide order sheet noting d....

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....turn filed for the A.Y 2016-17 along with the computation statement and submitted that the business income of Rs.8,69,984/- includes the interest on capital from Maruthi Service Station of Rs.64,058/- and Rs.16,534/- being the share of profit which is exempt from income tax. He accordingly submitted that once the assessee, as a partner of M/s. Matuthi Service Station, has already disclosed the interest on capital from the firm at Rs.65,058/- and the share of profit at Rs.16,534/- has been claimed as exempt u/s 10(2A), the CIT (A) was not justified in sustaining the addition made by the Assessing Officer. 8. The learned DR, on the other hand, heavily relied on the order of the learned CIT (A). 9. We have heard the rival arguments made by b....

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...., set aside the order of the learned CIT (A) on this issue and direct the Assessing Officer to delete the addition of Rs.64,508/-. 9.1 So far as the profit of Rs.16,534/- 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 No.554/Hyd/2021 - A.Y 2017-18 10. Grounds raised by the assessee are as under: "Addition of interest of Rs.86,540/- receivable from firm already income returned included in the and taxed u/s.115BBE The lear....