9911796707
TMI Blog2014 (7) TMI 46X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act. The entries which had been shown in the books of account of the assessee were not treated to be income u/s 41(1) or 68 of the Act – Relying upon Commissioner of Income-Tax Versus TV Sundaram Iyengar And Sons Limited [1996 (9) TMI 1 - SUPREME Court] - where the amount which was initially of capital nature but had changed its character to be of revenue nature, it was treated to be taxable income of the assessee - the amount found credited in the books of account of the assessee, the liability to pay back the same had ceased to exist - the Tribunal had rightly treated it to be assessee's taxable income – as such no substantial question of law arises for consideration – Decided against assessee. - ITA No. 401 of 2006 (O&M) - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Whether the amount of Rs. 1,03,648/- was chargeable to tax as business income in the assessment year 1993-94 by virtue of Section 41(1) of the Act even when the Department/Revenue failed to bring material on record to show that the liability of the assessee appellant had ceased or remitted during the assessment year 1993-94 and therefore, the amount in question was liable to be taxed as business income during the said assessment year? v) Whether in the absence of any finding with regard to the year in which the liability had ceased to exist or having been remitted, even when the transaction pertained to the financial year 1986-87, was the Tribunal right in law in concluding that the amount of Rs. 1,03,648/- was still assessable as incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s including copy of account of the creditors had already been submitted during the original assessment proceedings. It was further submitted that balances in the names of these parties were appearing since 1984 to 1987 and since the above liabilities were quite old and the addition made during the assessment year 1993-94 on the ground that liabilities had ceased to exist during the assessment year 1993-94 was not correct and there was no material/evidence to show that the liabilities ceased to exist during the year 1993-94, no addition on this account could be made. After considering the reply submitted by the assessee and the evidence on record, the Assessing Officer passed the assessment order dated 16.2.2005, Annexure P.3, making taxable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oney found credited in the books of account of the assessee was assessable as income of the appellant. 6. After hearing learned counsel for the parties and perusing the record, we do not find any merit in the appeal. 7. The Tribunal vide order dated 19.8.2002 when the appeal was filed at the instance of the assessee in the first round of litigation had remanded the case to the Assessing Officer and held that the provisions of section 41(1) of the Act were not applicable. The revenue had never challenged the said finding recorded by the Tribunal. The Tribunal while deciding the appeal had concluded that the income of the assessee could not be brought to tax by application of section 68 of the Act. However, the Tribunal recorded as unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... changes its character, when the amount becomes the assessee s own money because of limitation or by any other statutory or contractual right. When such a thing happens, the commonsense demands that the amount should be treated as income of the assessee. A useful reference to this principle may be had to the judgment in the case of Morley v. Tattersall (1939) 7 ITR 316 (CA). This principle has also been explained in the judgment in the case of CIT v. T.V.Sundaram Iyengar and Sons Limited, 222 ITR 344 (SC) In the overall conspectus of the case, it has to be held that the aforesaid amount aggregating to Rs. 1,03,648/- was assessable as income of the assessee under the head income from business and not as unexplained credits under section 68 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
