Business income treatment for bus-operations receipts upheld; 8% profit computation could not be taxed as income from other sources.

Income computed by applying an 8% profit rate to receipts from passenger bus operations was linked to the assessee's business activity, and there was no dispute about the nature of that activity. On that factual basis, the resultant income could not be assessed under the head income from other sources, and section 115BBE had no application. The income was therefore assessable as business income.

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Issues: Whether the income determined by applying an 8% profit rate on total receipts from bus operations was to be assessed as business income or as income from other sources with application of section 115BBE.

Analysis: The assessee was engaged in the business of operating passenger buses, and the finding recorded in the appellate order showed no dispute about the nature of the activity. The income was computed by applying 8% on the total receipts reflected in the profit and loss account, and the material before the Tribunal showed that this computation was intended to be linked to the assessee's business operations. In that factual setting, the assessment of the resultant income under the head income from other sources was not justified.

Conclusion: The income computed by adopting the 8% profit rate on total receipts was held to be assessable as business income and not as income from other sources. The assessee succeeded on the issue.

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