Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (11) TMI 664 - AT - Income TaxAddition on account of notional interest on the credit balance in the capital account of the assessee with a Partnership Firm - Partnership firm has not paid interest to partner and not claimed deduction u/s 40(b) - HELD THAT:- A.O. has not disputed the fact that there was no payment of interest or credit of interest by the partnership firm in the account of the assessee partner. A.O. has added the said income as notional interest on the capital balance of the assessee with the partnership firm. The assessee has now produced the audited financial statements of partnership firm as well as the assessment order passed under section 143(3), dated 18.11.2019 to show that the partnership firm has neither made any provision of the interest to the partners nor claimed any deduction on this account. CIT(A) has passed the ex parte order after granting six opportunities to the assessee however, on the last date of hearing, the assessee sought adjournment vide application filed online alongwith the medical certificate of the A.R. of the assessee. Therefore, once the assessee has requested for adjournment of hearing on the ground of illness of the A.R. and proof of illness was also filed then the CIT(A) ought to have granted one more opportunity of hearing to the assessee. Matter restored before the CIT(A) for fresh adjudication. - Appeal of the assessee is allowed for statistical purpose.
|