1998 (7) TMI 86

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.... Civil Rule No. 32(M) of 1992 statement of case has been submitted with the following question of law for this court's opinion under section 256(2) of the Income-tax Act, 1961 : "Whether, on the facts and in the circumstances of the case and in view of the provisions of rule 8 of the Income-tax Rules, 1962, the Tribunal was justified in law in sustaining the Commissioner of Income-tax (Appeals)....

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....the Assessing Officer in bringing to tax these items to full 100 per cent. The Commissioner of Income-tax (Appeals) accepted the assessee's contention and directed the Assessing Officer to tax only 40 per cent. of those items. It was the case of the Revenue coming to appeal before the Tribunal contending that items that were brought to tax in full by the Assessing Officer had no connection with th....

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....nsation received as well as receipts for empty gunny bags sold : Relying on rule 8(1) of the Income-tax Rules, 1962, it was contended that only 40 per cent. of the tea business was subjected to tax and accordingly the aforesaid three items received could only be taxed at 40 per cent. The Tribunal agreeing with the Commissioner of Income-tax (Appeals) that only 40 per cent. of the receipts was liab....

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....ase where the assessee contended that the loan transactions were made in the course of the tea business and the interest earned was only assessable at 40 per cent. of the total income and on a reference this court dealing with rule 8 held as follows : "In order to solve the problem we have to carefully examine the language of rule 8. This rule of 40 per cent.---60 per cent. is applicable to inc....