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TMI Blog1982 (8) TMI 98X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee received interest on the recoverable suspense, i.e., ad-interim purchase consideration from West Bengal State Electricity Board which had taken over all the units from the assessee-company. In the original return the assessee treated this interest as 'income from other sources' but in the revised return it claimed the same as income from 'business'. The ITO was of the opinion that the power supply business that was originally being conducted by the assessee had been entirely taken over by the State Electricity Board and the consideration therefor was nothing but a capital receipt. Therefore, any receipt received or receivable on interest receipt could not be treated as business income because there was no business (sic). For the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion, common administration, common fund and common place of business were held to be sufficient for allowing unabsorbed losses. Similarly, reference was made to another decision of the Supreme Court in B.R. Ltd. v. V.P. Gupta, CIT [1978] 113 ITR 647, wherein a loss in the business of import and sale of fabrics was held to be an allowable deduction against a subsequent income in export of cotton textiles, in view of the common management and control of the business. Again, reference was made to a judgment of the Allahabad High Court in CIT v. Rampur Timber Turnery Co. Ltd. [1973] 89 ITR 150 and Raj Narain Agarwala v. CIT [1970] 75 ITR 1 (Delhi) for the proposition that carry forward of unabsorbed depreciation could be availed of by an asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... association of the assessee had been altered and money-lending had also been included among the aims and objects of the assessee. A money-lending licence had also been obtained by the assessee and actually some money had been lent and interest was received thereon by the assessee as would be apparent from the statement of accounts for the various years ending 31-3-1973, 31-3-1974, 31-3-1975, 31-3-1976 and 31-3-1977 respectively. Therefore, it could not be said that the assessee was not carrying on any business. Another important argument addressed on behalf of the assessee was that the authorities below had themselves accepted the assessee's statement of accounts as per the profit and loss account submitted by the assessee. They had not sp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... buildings and erections and materials, tools, implements, machinery and metalware in connection therewith or incidental thereto and to carry on any other business that is customarily, usually and conveniently carried on therewith. (e) ii. To carry on the business of mill furnishers and of manufacturers, importers, dealers in and suppliers of all plant, machinery, stores, tools, implements and accessories. (e) iii. To carry on the business of manufacturers and importers of and dealers in agricultural implements and other machinery, tool makers and sellers, metal workers, boiler makers, mill-wrights, machinists, iron and steel converters, smiths, wood workers, builders, painters, metallurgists, electrical engineers, water-supply engineer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lf observed that it may be that each debtor could not be proceeded against but at least action be taken against some of them. It could not be said with certainty that the debts had become bad. That in our opinion should not be conclusive. Each debt should have been examined on merits which could have been done either by the ITO or by the Commissioner (Appeals). We, therefore, direct that this claim shall be considered afresh in the light of our aforesaid discussion. 9. Before concluding, we may refer to the assessee's one other ground that a sum of Rs. 2,97,021 which related to interest for the previous years had been wrongly included in the income of the present year. There is certainly force in this argument because according to the pro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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