ITO, WD-2(4), KOLKATA, KOLKATA vs. M/S SIMCO TELECOMMUNICATIONS (SOUTH ASIA) LTD., KOLKATA

The only issue is to be decided as to whether the CIT-A is justified in deleting the impugned addition made by AO by treating the same as income from business in the facts and circumstances of the case.

The contention of the ld.DR is that the issue involved in the appeal is that to determine whether the interest income is income from other sources or income from business. The ld. DR did not discuss the issue in detail and referred to assessment order dt. 26- 03-2013 and argued that the order of AO is cryptic and as such urged to remand the matter to the file of AO to consider the issue afresh.

On the other hand, the ld.AR did not controvert the above submissions of the ld.DR.

After hearing both the parties and perused the record. It is noted from the assessment order that the assessee company is manufacturer and trader of communication equipment. We find that the issue in question was not discussed by AO in his order regarding the nature of interest income. Therefore, taking into consideration the submissions of the ld.DR, facts of the case and in the interest of natural justice, we deem it fit and proper to remand the matter to the file of AO to decide the same afresh and to pass a fresh order as per law, after giving the assessee adequate opportunity of hearing. The assesse is at liberty to file requisite explanation/evidences, if any, to substantiate its claim. Grounds raised by the Revenue are allowed for statistical purposes.

In the result, the appeal of revenue is allowed for statistical purpose.