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TMI Blog2018 (6) TMI 93X X X X Extracts X X X X X X X X Extracts X X X X ..... sis of change of opinion. At the time of assessment made u/s 143(3) all informations/documents were submitted before Ld. Assessing Officer. There was no escapement of income. Proceedings u/s 147 was ab-initio null and void and fit to be deleted. 2. For that initiation of proceedings u/s 147 was ab-initio null and void. No recorded reasons were supplied to the appellant as such assessment made u/s 147 was illegal and unjustified. 3. For that Ld. C.I.T(A) was not justified for not considering remuneration and interest received from partnership firm as business income. As per section 28(v) of the I.T. Act, 1961 the salary, bonus, commission or remuneration received from partnership firm is termed as business income. As such order passed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot pressed. 4. Brief facts relating to the effective grounds No.3, 4, 5, 6 & 7 are that the assessee derives income from trading of petrol, diesel & lubricants and filed the return of income for the assessment year 2010-2011 on 18.10.2010 with total income of Rs. 5,58,370/- and the return of income was duly processed u/s.143(1) of the Act and the case was selected for scrutiny under CASS. Subsequently, notice u/s.143(2) & 142(1) of the Act were issued to the assessee. In compliance, the AR of the assessee appeared from time to time and case was discussed. Thereafter the AO completed the assessment and made various additions and assessed total income at Rs. 5,93,205/- and passed order u/s.143(3) of the Act, dated 31.12.2012. Subsequently i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f remuneration received from the partnership firm relying on the income tax details and prayed for allowing the claim 8. Contra, ld.DR relied on the orders of lower authorities. 9. We heard the rival submissions and perused the material on record. Prima facie, on the first disputed issue of taxability of remuneration and interest received from partnership firm as business income. Ld. AR submitted that the assessee is having proprietary business and interest income is offered separately and also income from partnership firm in the nature of remuneration and interest on capital. The AO and the CIT(A) has not treated this income under the income from business and also disallowed the claim of expenses of the assessee. Before us, ld. AR demon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... disputed of allowability of expenditure of Rs. 4,14,420/-, which was claimed as deduction in the business income. This expenditure was not allowed to the assessee. We find that the assessee's income is chargeable under the business income as discussed above and also the assessee is entitled for the claim of expenditure which is wholly and exclusively utilized for the earning of above income are allowable. Ld. AO has disputed the genuineness of the expenses, therefore, we are of the opinion that the assessee should not be deprived to claim the addition if allowable. Accordingly, we direct the AO to verify the expenditure as claimed on the business income and remit to the file of AO. This ground of appeal is allowed for statistical purposes ..... X X X X Extracts X X X X X X X X Extracts X X X X
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