Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2006 (12) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2006 (12) TMI 114 - HC - Income TaxDisallowed on deduction u/s 80HHC - Not furnish Form No. 10CCAC along with return - Nature of "sundry credit balances written back" - Taxable under the head "Income from business" or "Income from other sources" - HELD THAT:- There were credits appearing in the books on the basis of purchase of items from various suppliers and these suppliers were not paid. These unclaimed credit balances were brought to the profit and loss account and the same had emanated from trading transactions only. There is a finding given by the Tribunal that the said transaction is very much connected or closely linked with the assessee's business activities. The receipt had arisen only out of ordinary trading transaction and hence it was rightly assessed under the head "Business". Therefore, we are of the view that the reasons given by the Tribunal are based on valid materials and evidence and hence we do not find any error or legal infirmity in the order of the Tribunal so as to warrant interference. Thus, we are of the view that the Tribunal is right in holding that the income should be assessed under the head "Business" and also on this basis, the assessee is entitled to the benefit u/s 80HHC of the Act. Hence, we answer the question of law in favour of the assessee and against the Revenue and accordingly, the tax case is dismissed.
|