9911796707
TMI Blog2008 (4) TMI 270X X X X Extracts X X X X X X X X Extracts X X X X ..... relevant year, but each part individually cost less than Rs. 5000/- and, therefore, allowing of 100% depreciation on each individual part instead of the depreciation of only 25% was justified. The Tribunal has not committed any error on the said question. The next question sought to be raised before us with regard to Tribunal deleting the addition of Rs. 5,725/- on account of brokerage expenditure relating to earlier year, the issue stands concluded in favour of the assessee and against the department by a decision of this Court in the case of Swadeshi Cotton Mills Co. Ltd. Versus C.I.T., 125 ITR 22 (All). The fourth question of law which has been sought to be raised in this appeal by the department relates to the Tribunal's decision t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is possible for a company to have six different sources of income, each one of which will be chargeable to income tax. Profits and gains of business or profession is only one of heads under which the company's income is liable to be assessed to tax. If a company has not commenced business there cannot be any question of assessment of its profits and gains of business. That does not mean that until and unless the company commences its business, its income from any other source will not be taxed. If the company, even before it commences business, invests the surplus funds in its hands for purchase of land or house property and later sells it at profit, the gain made by the company will be assessable under the head "Capital gains". Similarly, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was argued that this issue stands concluded against the department and in favour of the assessee by the law declared by the Supreme Court. On that basis, we had dictated this order deciding this point also in favour of the assessee. However, before signing the order, we found that in the case of C.I.T. Versus General Insurance Corporation, (2006) 8 SCC 117, the Supreme Court has held as follows:- "Decisions of this Court in Punjab State Industrial Development Corporation Ltd. Versus C.I.T., (1997) 225 ITR 792 (SC) and Brooke Bond India Ltd. Versus C.I.T., (1997) 225 ITR 798 (SC) and C.I.T. Versus. Motor Industries Co. Ltd., (1998) 229 ITR 137 of Karnataka High Court at page SCW 5538, C.I.T. Versus Ajit Mills Limited, (1994) 210 ITR 658, G ..... X X X X Extracts X X X X X X X X Extracts X X X X
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