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2014 (6) TMI 734 - AT - Income TaxLoss from business or profession - set off of business loss against the income shown under the head income from house property u/s. 71 - Conversion of the closing stock into capital asset – Held that:- The assessee had converted the stock in trade in to capital asset and the unsold flats and office premises became the capital asset of the assessee - Conversion was essentially sale of the assets, the assessee was carrying on business - conversion of stock in trade was not at market value - there was no business in the year - FAA was justified in holding that the assessee had carried out business during the year - business loss claimed by the assessee has rightly been allowed by the FAA - Decided against Revenue. Cessation u/s 41(1) of the Act - Refund of excess Bank processing charges – Held that:- Refund of bank processing charges and sundry balances returned back could not be taxed under the head income from other sources, that both the amounts should be assessed under the head income from business - income on cessation of liability pertain to section 41 of the Act, that assessee had rightly claimed the income under the head income from business/ profession - assessee was carrying on business during the year under appeal - both the items are to be treated as part of the business income of the assessee – Decided against Revenue.
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