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2018 (1) TMI 1147 - HC - Income TaxClaim of deduction u/s 40(b) - working out the salary paid to the partner in terms of section 40(b) - amount surrendered in the course of survey U/s. 133A - the surrender amount was shown as business income and assessed as business income - Held that:- It is undisputed that the Assessing Officer has brought to tax the amount of ₹ 1,55,289/shown as other income in profit and loss account as income from business under Section 28 of the Act. The assessment order does not classify the same as income from other sources or under any other head. Once the aforesaid position is accepted, then for the purpose of computing book profit as defined in section 40(b), the other income of ₹ 1,55,289/has also to be considered to be part of income from business arrived at in accordance with the Chapter IVD of the Act. It is not open to the Revenue to contend that the amount of ₹ 1,55,289/is part of business income while computing the tax payable but not so for the purposes of Section 40(b) of the Act. The character of the income does not change dependent upon the section to be applied. This issue has not been examined at all by the authorities under the Act. It goes to the root of the dispute. - Decided in favour of appellant/assessee
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