Assessee is individual and engaging in carrying the administration of funds of group. while doing so he accepts the funds from the group concerns and individuals on the interest rate of 12% p.a\u00a0 and provide the funds\u00a0 to the Group concerns and individuals who are in need of the funds and charged the interest @14% p.a. Assessee has also his own capital which he is utilizing\u00a0 for this purpose only. Assessee has offered the net income as income from business and profession .There is no direct nexus between the funds borrowed and funds given to sister concerns. During the course of scrutiny assessment AO has given the show cause that since the assessee is not having valid license under Money Lending Act , he is not going to accept the net income as income from business and profession, but will tax the income of Interest received as Income from other sources and not going to allow the deduction for interest paid by the assessee from whom he has taken the advances. Assessee is offering the net interest under Income from business and profession past many years and his return of income were accepted U\/sec. 143(1)(a) and in one year U\/Sec.143(3) of the Act.<\/p>\n
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