2018 (1) TMI 1147

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....t. : Mr. B. N. Mohta ORDER P.C. 1. This appeal under Section 260A of the Income Tax Act, 1961 (Act) challenges the order dated 16th July, 2003 of the Income Tax Appellate Tribunal, Nagpur. 2. This Court on 26th October, 2007 admitted the appeal on the following substantial question of law : '(a) Whether the claim under section 40(b) of the I.T. Act is allowable on amount s....

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....taken into account by crediting it to the profit and loss account under the head 'other income'. However, to work out the salary paid to the partner in terms of section 40(b) of the Act, the appellant had taken into account the same in computing book profits. The Assessing Officer held that the other income shown by the appellant could not be considered to be business income of the firm....

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....d order dt. 16th July 2003, the Tribunal rejected the appeal, inter alia holding that the book profits have been defined to mean as 'net profit' as shown in the profit and loss account and computed in the manner provided in Chapter IVD of the Act i.e. sections 28 to 44D of the Act. The amount of Rs. 1,55,289/not being shown to having any nexus with the business activities carried by the ap....

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....as been completely overlooked by the Tribunal in its impugned order. Therefore, it is submitted that the character of the income does not undergo change depending upon the section of the Act applied. 8. Mr. Bhushan Mohta, learned counsel for the Revenue, states that the error in not separately classifying the other income as income from other sources, would not be fatal to the case of the Reven....