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TMI Blog2013 (1) TMI 953X X X X Extracts X X X X X X X X Extracts X X X X ..... and treated as income earned out of undisclosed sources ? [B] Whether in the facts and circumstances of the case and in law the Ld. ITAT is right in law and on facts in not confirming the order of the A.O. Of addition on account of labour income treated as earned out of undisclosed sources ? [C] Whether in the facts and circumstances of the case and in law the Ld. ITAT is right in law and on facts in not directing to allow interest expenditure of ₹ 36,82,000/- claimed as business expenditure though the assessee failed to establish that the funds borrowed the and interest expenditure incurred was for earning taxable income of the year ? Upon perusal of the impugned judgment of the Tribunal, we notice that for both the issues aris ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 377; 300/per brass for the use of machinery hence, the assessee did not have to incur any expenditure on fuel or labour. It was also submitted that the names of the persons concerned were mentioned in the bills. Since the amount was taken in advance, the assessee did not maintain the addresses of the persons who used the machinery for crushing stones. It was submitted that since the machinery was a business asset which had been commercially exploited for the purpose of business, the income derived therefrom was business income. It was also submitted that since there was a definite source of income and there was exploitation of a commercial asset, the decision of this High Court in the case of CIT vs. Fakir Mohmad Haji Hasan, 247 ITR 290 wou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al and 'kapchi' . The assessee had also explained that he had since then merged all his proprietary concerns. In the light of the aforesaid facts, the Tribunal found that the stand of the Department that the assessee had not carried on any business was not borne out by the record and held that since there was an exploitation of a commercial asset, the income derived from labour was an income from business. 7. As can be seen from the assessment order, the assessee had credited an amount of ₹ 2,15,80,800/as labour income. The Assessing Officer after affording the assessee an opportunity to explain the source of the said amount, found that the source and genuineness of the amount of ₹ 2,15,80,800/credited as labour re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the respondent assessee was exploiting his land and machinery by putting the same to use for making chips from boulders. That the labour income had been derived by exploitation of the commercial asset of the assessee and as such is a business income. In the circumstances, the conclusions arrived at by the Tribunal being based upon findings of fact recorded by the Tribunal upon appreciation of the evidence on record, it cannot be stated that the Tribunal has committed any legal error so as to give rise to a question of law. 9. In relation to proposed question no.2, as can be seen from the impugned order of the Tribunal, the Tribunal has recorded that the Assessing Officer and Commissioner (Appeals) had mainly disallowed the interest on th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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