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TMI Blog2023 (4) TMI 901X X X X Extracts X X X X X X X X Extracts X X X X ..... or the purpose of Section 80-HHC(3) of the 1961 Act, income/profit earned from sale of shares would be included in the amount which bears to the profits of the business as computed under the head profits and gains of business or profession . The receipt/gross amount from sale of shares would be included in the total turnover; and Income by way of interest in the assessment years 1989- 1990, 1990-1991 and 1991-1992, being income taxable under the head income from other sources , would be compulsorily excluded for the purpose of computation of deduction under Section 80-HHC(3) of the 1961 Act. - CIVIL APPEAL NO. 7751 OF 2012 CIVIL APPEAL NO. 7753/2012 CIVIL APPEAL NO. 7754/2012 AND CIVIL APPEAL NO. 7752/2012 - - - Dated:- 12-4-2023 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and dictum in P.R. Prabhakar (supra), we have no difficulty in holding that the impugned judgment dated 29.10.2009 of the Delhi High Court in I.T.A. Nos. 1141 of 2006, 1149 of 2006, 1150 of 2006, 1503 of 2006, 1504 of 2006, 1505 of 2006, 1506 of 2006, 1507 of 2006, 1560 of 2006, 1675 of 2006, 137 of 2007 and 196 of 2007, inter alia, applying the substituted and amended provisions of Section 80-HHC(3) of the 1961 Act, vide Finance (No. 2) Act, 1991, is unsustainable. However, as the case is very old and we do not perceive and find any difficulty in deciding these appeals on merits by applying the provisions of the 1961 Act, as they existed and are applicable to the assessment years 1989-1990, 1990-1991 and 1991-1992, we proceed to do so. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income from business or business income , which is not taxable as income from capital gains , yet for the purpose of computation of deduction under Section 80-HHC(3) of the 1961 Act, income from sale of shares has not been treated as income from business . In view of the finding, as recorded by the assessing officer, on the head under which income from sale of shares is taxable, which finding has attained finality, we have no difficulty in accepting the plea and stand of the appellant/assessee M/s. Magnum International Trading Company (P) Ltd., that income from sale of shares should be treated as income from business for computation of deduction under clause (b) to Section 80-HHC(3) of the 1961 Act. Needless to say, once th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the income earned in the assessment years 1990-1991 and 1991-1992 of Rs. 95,83,895/- (Rupees ninety five lakhs eighty three thousand eight hundred ninety five only) and Rs.1,18,56,913/- (Rupees one crore eighteen lakhs fifty six thousand nine hundred and thirteen only) respectively, will be taxable under the head income from other sources . Accordingly, Civil Appeal nos. 7752/2012 and 7753/2012, both pertaining to the assessment year 1989-1990, and Civil Appeal nos. 7751/2012 and 7754/2012, pertaining to the assessment years 1990- 1991 and 1991-1992, are partly allowed, albeit with the direction and clarification that: (i) computation of deduction under Section 80-HHC of the 1961 Act would be made as per clause (b) to sub-section ( ..... X X X X Extracts X X X X X X X X Extracts X X X X
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