TMI Blog1982 (8) TMI 99X X X X Extracts X X X X X X X X Extracts X X X X ..... engal State Electricity Board which had taken over all the units from the assessee-company. In the original return the assessee treated this interest as income from other sources but in the revised return it claimed the same as income from business. The ITO was of the opinion that the power supply business that was originally being conducted by the assessee had been entirely taken over by the State Electricity Board and the consideration was nothing but a capital receipt. Therefore, any receipt received or receivable on interest receipt could not be treated as business income because there was no business. For the same reasons interest receipt from the bank could not be considered as business income because it was not a transaction in the n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imilarly, reference was made to another decision of the Hon'ble Supreme Court in B.R. Ltd. vs. V.P. Gupta, CIT, Bombay 1978 CTR (SC) 82 : (1978) 113 ITR 647 (SC) wherein a loss in the business of import and sale of fabrics was held to be an allowable deduction against a subsequent income in export of cotton textiles in view of the common management and control of the business. Again, reference was made to a judgment of the Allahabad High Court in CIT vs. Rampur Timber and Turnery Co. Ltd. (1973) 89 ITR 150 (All) and Raj Narayan vs. CIT, Delhi (1970) 75 ITR 1 (Del) for the proposition that unabsorbed depreciation could be availed of by an assessee in any subsequent year without satisfaction of the preconditions attached to sub-s (1) of s. 35 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see. A money lending licence had also been obtained by the assessee and actually some money had been lent and interest was received thereon by the assessee as would be apparent from the statement of accounts for the various years ending 31st March, 1973, 31st March, 1974, 31st March, 1975, 31st March, 1976 and 31st March, 1977 respectively. Therefore, it could not be said that the assessee was not carrying on any business. Another important argument addressed on behalf of the assessee was that the authorities below had themselves accepted the assessee's statement of accounts as per the Profit Loss Account submitted by the assessee. They had not specifically held the assessee's income/loss as being from other sources. They had discussed th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat is customarily, usually and conveniently carried on therewith. (e)(ii) To carry on the business of mill furnishers and of manufacturers, importers, dealers in and suppliers of all plant, machinery, stores, tools, implements and accessories. (e)(iii) To carry on the business of manufacturers and importers of and dealers in agricultural implements and other machinery, tool makers and sellers, metal workers, boiler makers, millwrights, machinists, iron and steel converters, smiths, wood workers, builders, painters, metallurgists, electrical engineers, water-supply engineers, gas makers, farmers, printers, carriers and merchants and to buy and sell, manufacture, repair, convert, alter, let on hire and deal in machinery, implements, ro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come bad. That in our opinion it should not be conclusive. Each debt should have been examined on merits which could have been done either by the ITO or by the CIT (A). We, therefore, direct that this claim shall be considered afresh in the light of our aforesaid discussion. 9. Before concluding, we may refer to the assessee's one other ground that a sum of Rs. 2,97,021 which related to interest for the previous years had been wrongly included in the income of the present year. There is certainly force in this argument because according to the proviso to sub-s. (3) of s. 5 of the Indian Electricity Act, 1910, the purchaser has to pay to the licences interest at the Reserve Bank rate ruling at the time of delivery of the undertaking plus ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
