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TMI Blog2018 (1) TMI 1147X X X X Extracts X X X X X X X X Extracts X X X X ..... for the purpose of computing book profit as defined in section 40(b), the other income of ₹ 1,55,289/has also to be considered to be part of income from business arrived at in accordance with the Chapter IVD of the Act. It is not open to the Revenue to contend that the amount of ₹ 1,55,289/is part of business income while computing the tax payable but not so for the purposes of Section 40(b) of the Act. The character of the income does not change dependent upon the section to be applied. This issue has not been examined at all by the authorities under the Act. It goes to the root of the dispute. - Decided in favour of appellant/assessee - Income Tax Appeal No.79 of 2003 - - - Dated:- 12-6-2017 - M. S. Sanklecha And Manish Pit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... had taken into account the same in computing book profits. The Assessing Officer held that the other income shown by the appellant could not be considered to be business income of the firm, this other income of ₹ 1,55,289/was added in the profit and loss account to the gross profit and included for the purposes of Section 40(b) of the Act while determining the book profit. However, otherwise the amount of ₹ 1,55,289/was included as a part of business income to compute the tax payable in the assessment order dated 29th December, 2000. 5. Being aggrieved, the appellant carried issue in appeal to the Commissioner of Income Tax (Appeals) (CIT(A)). By order dt.10th August, 2001, CIT (A) held that merely because an amount has b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ooked by the Tribunal in its impugned order. Therefore, it is submitted that the character of the income does not undergo change depending upon the section of the Act applied. 8. Mr. Bhushan Mohta, learned counsel for the Revenue, states that the error in not separately classifying the other income as income from other sources, would not be fatal to the case of the Revenue. This is particularly so when reasoning given in the order of Assessing Officer as confirmed by the CIT(A) as well as of the Tribunal is considered. 9. It is undisputed that the Assessing Officer has brought to tax the amount of ₹ 1,55,289/shown as other income in profit and loss account as income from business under Section 28 of the Act. The assessment order ..... X X X X Extracts X X X X X X X X Extracts X X X X
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