2006 (12) TMI 114

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....of law: "Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was right in holding that the assessee was entitled to deduction under section 80HHC in respect of Rs. 9,59,197 being unclaimed balances written back in the profit and loss account relating to the assessment year 1993-94?" 2. The brief facts leading to the above question of law are as under: The assessee is a firm engaged in the business of manufacture of shoes and tannery and also export sales of shoe uppers. The relevant assessment year is 1993-94 and the corresponding accounting year ended on March 31, 1993. The assessee filed a return of income on December 15, 1994, admitting the total income as nil. The return was....

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....he Act. 3. Learned standing counsel appearing for the Revenue submitted that, since the assessee did not produce any details regarding the nature of "sundry credit balances written back", the Assessing Officer is right in treating the said amount as income under the head "Other sources" and consequently, the assessee is also not entitled to relief under section 80HHC of the Act. 4. Learned counsel appearing for the assessee submitted that the authorities below failed to understand the fact that the sundry credit balances were only out of the business income and expenditure and hence the same should be assessed only under the head "Business". 5. Heard counsel. In the present case, the assessee rightly offered the sum of Rs. 9,59,197....