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53 orders · Page 2 of 2
The Tribunal held that if investments are made out of compulsion as per the Karnataka Co-operative Societies Act, the interest income derived from such investments would be considered business income and eligible for deduction under Section 80P(2)(a)(i). The issue was restored to the AO for verification.
The Tribunal directed the AO to examine the bank statements of the individual to verify if the export turnover was disclosed there. If confirmed, the addition to the HUF's income cannot be sustained.
The Tribunal, considering the assessee's inability to represent its case due to the director's foreign visit, granted one more opportunity to present the case before the AO. This was on the condition of paying costs of Rs. 50,000.