2010 (1) TMI 768

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....e commission (Net) and share income of Rs.99,124/- as share income made by Assessing Officer under the head "Income from Other Sources". Since the company is not in the business of purchases and sales of shares and commission work which had been shown as business income to be set off the huge brought forward losses. In similar cases of M/s Ashirwad Steel and Alloys (P) Ltd. for A.Y. 2000-01. The Ld. CIT (Appals), Muzaffarnagar held that Assessing Officer is justified in treating the income as income from other sources.   2. That order of the Ld. CIT(Appeals) be set aside and that of the A.O. be restored.   3. The only issue for consideration relates to treating the commission income of Rs.60,13,945/- under the head "Other so....

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....uent years. Reliance was placed on the decision in the case of M/s Doaba Rolling Mills Pvt. Ltd. wherein the ld. Commissioner of Income-tax as well as the Income-tax Appellate Tribunal for the Assessment Years 1995-96 and 2000-01 have held that income from commission was assessable under the head "Business". The assessee also relied on the decision of ld. CIT(A) for Assessment Year 2004-05 in which similar income was held to be in the nature of business by the ld. CIT(A). The ld. CIT(A) after considering the reasoning given by his predecessor and the I.T.A.T. in the case of Doaba Rolling Mills Pvt. Ltd. and his reasoning in assessee's own case for Assessment Year 2004-05 held that the commission income of Rs.60,13,945/- was to be assessed a....

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....sociation to justify that commission is to be assessed as business income. Further, ld. CIT(A) has not discussed anything as to why the commission income should be assessed as business income. For Assessment Year 2004-05 in the case of assessee, nothing has been discussed about the objects of the company. He has simply placed reliance on the decision of M/s Doaba Rolling Mills Pvt. Ltd. The assessee had not provided copy of Memorandum of Association so as to verify whether the income earned by way of commission was to be assessed under the head "Business". In the absence of any such finding recorded by the ld. CIT(A), in our considered opinion, the matter should be restored back to the file of ld. CIT(A) with the direction to examine the ob....