TMI Blog2006 (12) TMI 114X X X X Extracts X X X X X X X X Extracts X X X X ..... g 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 t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee-firm for deduction under section 80HHC of the Act, was rejected. Later the total income as per the assessment under section 143(1)(a) of the Act was determined at Rs, 10,89,460. Subsequently, the matter was taken up for scrutiny with the prior approval of the Deputy Commissioner. Notice under section 143(2) of the Act was issued to the assessee and the assessment was completed under section 143(3) of the Act, after making certain additions. While completing the assessment, the Assessing Officer treated the sum of Rs. 9,59,197 as income under the head Other sources and also computed the income as under: Aggrieved by the order, the assessee filed an appeal to the Commissioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the customers of the company to the profit and loss account of the company, the same is taxable as income of the assessee. There is no dispute regarding the taxability of the receipt. The only dispute is, how the said amount should be assessed-whether the said amount should be assessed under the head Income from business or under the head Income from other sources . 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 w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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