TMI Blog2013 (10) TMI 369X X X X Extracts X X X X X X X X Extracts X X X X ..... . Assessee was exploiting his land and machinery by putting the same to use for making chips from boulders. That the labour income had been derived by exploitation of the commercial asset of the assessee and as such is a business income – Decided against the Revenue. - Tax Appeal No. 562 of 2012 - - - Dated:- 17-1-2013 - Akil Kureshi And Sonia Gokani,JJ. For the Petitioner : Mr. Pranav G. Desai, Advocate For the Respondent : Mr. RK Patel, Advocate ORDER (Per : Honourable Mr.Justice Akil Kureshi) Revenue is in appeal against the judgment of the Income Tax Appellate Tribunal, Rajkot Bench ( Tribunal for short) dated 23rd March 2012, raising following substantial questions of law for our consideration :- [A] Whe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee was in the business of stone crushing since over 30 years. In support of the said contention, assessment orders under section 143(3) for the years 199192, 199293, 199394 and 199495 had been filed. It was submitted that the assessee was carrying on the same business of giving machinery for labour work under the name of his proprietary concern M/s. Saurashtra Supplying Company. The assessee had produced bills of labour receipts and had pointed out that the assessee was having a stone crushing plant at Navagam which mainly consisted of three stone crushing machines. The book value of the machineries was the written down value as at the end of the relevant year. The assessee was following the practice of giving the entire machinery at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rcial exploitation of the asset. The Tribunal further noted that the nature of the business carried on by the assessee was such that it was practically impossible for the assessee to go to different places and purchase raw material which consisted of big boulders for the purpose of crushing. That the assessee therefore, had to depend upon contractors for the purpose of making big boulders available which, in turn, would be converted into chips which could be used by the contractors for building purpose. Simply because the contractors had incurred the expenditure on labour and fuel, it could not be said that the assessee had not exploited the capital asset. From the record as well as the assessment orders placed on record, the Tribunal found ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the nature and source thereof or the explanation offered by him is not, in the opinion of the Assessing Officer, satisfactory, the sum so credited may be charged to income tax as the income of the assessee of the previous year. In the facts of the present case, it is not as if the sum of Rs. 2,15,80,800/is found to have been only credited in the books of the assessee maintained for the relevant previous year but the assessee has shown the same to be income from business for the assessment year in question. Thus, in the present case, the assessee had already shown the same to be income in the present year hence, the question of invoking the provisions of section 68 would not arise at all. Section 68 of the Act does not permit changing of hea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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