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TMI Blog1994 (11) TMI 125X X X X Extracts X X X X X X X X Extracts X X X X ..... the Companies (Profits) Surtax Act, 1964, while computing the income from the business carried out by it under the Income-tax Act, 1961 ? 2. Whether, on the facts and in the circumstances of the case, the amounts received in the course of the business carried on by the assessee and later written back to the profit and loss account as unclaimed, partake of the nature of the trading receipts taxable under section 28(iv) of the Income-tax Act, 1961? " The first question is covered by the decision of this court in Lubrizol India Ltd. v. CIT [1991] 187 ITR 25. Following the same, we answer this question in the negative and in favour of the Revenue. So far as the second question is concerned, the relevant facts pertaining to it are as under : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the value of benefits received by the assessee in the ordinary course of business carried on by it and hence it was a trading receipt includible in the computation of the income of the assessee. The Income-tax Officer, therefore, disallowed the contention of the assessee and refused to deduct the same from the income of the assessee for determination of its total taxable income under the head " Income from business ". The assessee appealed to the Commissioner of Income-tax (Appeals). The Commissioner of Income-tax (Appeals), however, confirmed the order of the Income-tax Officer. The assessee appealed to the Income-tax Appellate Tribunal. The Tribunal also confirmed the action of the Income-tax Officer and the Commissioner of Income-tax (A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion. " From a reading of section 28 of the Act, it is clear that besides the profits and gains of business and profession carried on by the assessee at any time during the previous year, certain other benefits, etc., specified therein are also chargeable to income under this head. Clause (iv) with which we are concerned in this case deals with the value of any benefit or perquisite, whether convertible into money or not. The only condition for inclusion of the same in the chargeable income of the assessee is that it should arise from business or exercise of a profession. So far as the requirement of arising from business is concerned, there can be no controversy in this case. The benefit that has arisen to the assessee in the instant cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The assessee had appropriated these amounts, which were appearing in its account as amounts due to others, to its own account as profit by crediting the same to its profit and loss account. No benefit in cash as such had arisen to the assessee during the year under consideration. The benefit received by the assessee by appropriation of this amount to its profit and loss account is definitely a benefit convertible into money. Section 28(iv) of the Act will squarely apply to such benefit. The controversy whether benefit arising in cash will fall within the purview of section 28(iv) or not is thus academic so far as the present case is concerned. In that view of the matter, we need not decide the same. We are, therefore, of the opinion that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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