N K Industries, Mumbai vs Assessee

Per Joginder Singh (Judicial Member) The assessee is aggrieved by the impugned order dated 08/07/2011 of the ld. First Appellate Authority, Mumbai, broadly on the ground that the ld. Commissioner of Income Tax (Appeals) erred in passing an ex-party order holding 2 M/s N.K. Industries.

that interest income of Rs.3,69,816/- as income from other sources instead of business income by further holding that since no business activity was carried out by the assessee, therefore, the income derived by way of interest has to be assessed as income from other sources ignoring the true factual matrix. More specifically, when the assessee incurred huge expenses to the tune of Rs.3,23,000/- by way of salary office establishment expenses and other related expenses as the assessee is at ongoing exercise for the revival of the business.

2. During hearing of this appeal, Dr. P. Daniel, ld. counsel for the assessee advanced his arguments which are identical to the ground raised. On the other hand, the Shri Love Kumar, ld. DR, defended the conclusion arrived at in the assessment order as well as impugned order.

2.1. We have considered the rival submissions and perused the material available on record. Without going into much deliberation fact remains that an ex-party order was passed by the ld. Commissioner of Income Tax (Appeals), therefore, keeping in view, the principle of natural justice that no person should be condemned unheard, we direct the ld. Commissioner of Income Tax (Appeals) to examine the claim of the assessee and decide the appeal afresh after being providing opportunity of being heard to the assessee with further liberty to furnish evidence, if any, in support of its claim. The ld. Commissioner of Income Tax (Appeals) is also to examine the nature of income and expenses and also 3 M/s N.K. Industries.

the efforts, if any, made by the assessee for revival of its business. If the ld. Commissioner of Income Tax (Appeals) desires he may call remand report from the Assessing Officer. The appeal of the assessee is allowed for statistical purposes only.

Finally, appeal of the assessee is allowed for statistical purposes only.

This Order was pronounced in the open court in the presence of ld. representatives from both sides at the conclusion of the hearing on 07/04/2015.

Sd/- Sd/- (D.Karunakara Rao) (Joginder Singh) लेखा सद#य / ACCOUNTANT MEMBER या$यक सद#य / JUDICIAL MEMBER मब

ुं ई Mumbai; +दनांक Dated : 07/04/2015 f{x~{tÜ? P.S/. न.स.

आदे श क %$त'ल(प अ)े(षत/Copy of the Order forwarded to :

1. अपीलाथ/ / The Appellant

2. 01यथ/ / The Respondent.

3. आयकर आय3 ु त(अपील) / The CIT, Mumbai. p4. आयकर आय3 ु त / CIT(A)- , Mumbai

5. 5वभागीय 0 त न ध, आयकर अपील*य अ धकरण, मब ुं ई / DR, ITAT, Mumbai

6. गाड$ फाईल / Guard file.

आदे शानस ु ार/ BY ORDER, स1या5पत 0 त //True Copy// उप/सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपील य अ धकरण, मब ुं ई / ITAT, Mumbai