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2013 (6) TMI 249 - ITAT MADRASProfits and gains of business or profession v/s income from other sources - Recoveries from candidates who did not stick upto the agreement [Security deposits (forfeiture) & Bank guarantee invoked], Administrative fees collected from candidates, Interest income from bank fixed deposit, Excess received from overseas client & Others - Held that:- A receipt during the course of the business is a receipt which is attributable to the business activity of the assessee or a receipt of the assessee which has a nexus direct or indirect with the business of the assessee or receipts arising out of the business asset of the assessee is assessable under the head ‘profits and gains of business or profession’. As in the instant case, the lower authorities have not verified the nature and source of six receipts in question properly, it shall be fair and in the interest of justice to restore this issue back to the file of the AO for deciding afresh by passing a speaking order after allowing proper opportunity of hearing to the assessee. The profits and gains derived from export which is allowable as deduction u/s 10B is to be computed in accordance with the provisions of section 10B(4) wherein profits and gains of the undertaking is to be ascertained which may not be same as the amount assessable under the head ‘profits and gains of business or profession’ of the assessee. Thus, the grounds of appeal of the assessee are allowed for statistical purposes.
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