TMI Blog2022 (1) TMI 97X X X X Extracts X X X X X X X X Extracts X X X X ..... als were available on record with regard to the sundry income credited in the profit and loss account and the AO has secured the required details and has not made any adverse observation in its order. Therefore, the Tribunal concluded that the AO was satisfied that the income in question had direct nexus with the business of the assessee and, therefore, had to be regarded as income from business. Tribunal found that it is not disputed that income from sale of scrap, foreign exchange fluctuation gain are inextricably linked to the professional income and have to be regarded as income from profession. With regard to the payment of service charges to M/s. Price Water House Coopers, the required details were filed by the assessee and looked ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... book filed, which were the materials already available on record. Thus, the Tribunal was satisfied on facts that the Assessing Officer has inquired into the matter to the extent required the documents were available with the Assessing Officer and, accordingly, held that the assessment order cannot be treated to be erroneous or prejudicial to the interest of revenue.- Decided against revenue. - IA No.GA 2 of 2017 (Old No. GA 2018 of 2017)In ITAT 229 of 2017 - - - Dated:- 10-12-2021 - THE HON'BLE JUSTICE T. S. SIVAGNANAM AND THE HON'BLE JUSTICE HIRANMAY BHATTACHARYYA Ms. Sucharita Biswas, Adv. Mr. Arunava Ganguly, Adv. for the appellant Mr. J.P. Khaitan, Sr. Adv.Mr. Indranil Nandi, Adv. Mr. Sayak Konar, Adv. for the resp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncorrect computation of partners' salary under Section 40(b) of the Income Tax Act, 1961. The respondent/assessee has credited a sum of ₹ 10,35,13,136/- as sundry income. Whether for the purpose of computation of partners' salary allowable under Section 40(b) of said receipt being income from other sources should be excluded from the book profit? We have heard Ms. Sucharita Biswas, learned standing Counsel appearing for the appellant/Revenue and Mr. J.P. Khaitan, learned Senior Counsel for the respondent/assessee. The order impugned before the Tribunal was passed by the Commissioner of Income Tax, Kolkata XIX, Kolkata (CIT) dated 28.03.2014 in exercise of his power under Section 263 of the Act. The respondent/assessee f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cer has failed to take note of the mistake and the failure on the part of the Assessing Officer to examine this point has made the assessment erroneous and prejudicial to the interest of revenue. Accordingly, notice under Section 263 of the Act was issued on 06.03.2014 to the assessee and after hearing the submissions of the assessee and the revenue the CIT passed the order dated 28.03.2014 holding that the order of assessment was erroneous and prejudicial to the interest of revenue and directed the Assessing Officer to examine all issues. Aggrieved by the same, the assessee preferred the appeal before the Tribunal. The assessee's case was that inquiry was conducted by the Assessing Officer before completing the assessment and it is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exus with the business of the assessee and, therefore, had to be regarded as income from business. Furthermore, the Tribunal found that it is not disputed that income from sale of scrap, foreign exchange fluctuation gain are inextricably linked to the professional income and have to be regarded as income from profession. With regard to the payment of service charges to M/s. Price Water House Coopers, the required details were filed by the assessee and looked into by the Assessing Officer, who has raised the specific queries on those charges. Therefore, the Tribunal was satisfied that necessary inquiries were made by the Assessing Officer. Furthermore, the Tribunal specifically noted that similar charges have been allowed as a direction in t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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