1976 (4) TMI 52

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....er section 256(2) of the Income-tax Act, 1961 (hereinafter referred to as " the Act "), this court required the Income-tax Appellate Tribunal, Cuttack Bench, to state a case and refer the following question for opinion of the court : " Whether, on the facts and in the circumstances of the case, it was legal and justifiable for the Tribunal to hold that the income derived by the assessee by way ....

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....es and fixed deposits on the footing that the same did not qualify for exemption under section 81(i). The Income-tax Officer also rejected the contention that such exemption would be available under section 81(v) of the Act as he was of the opinion that such benefit was available to an assessee not being a housing society. Assessee appealed to the Appellate Assistant Commissioner and reiterated....

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.... fact that interest on securities and fixed deposits were assessable under two different heads, namely, interest on securities and income from other sources, the exemption contemplated under section 81(i) of the Act in respect of profits and gains of business included both. The counter contention advanced by the revenue was that the phrase profits and gains of business did not take within it incom....

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....ecided not on the basis of the provisions of the section dealing with it, but on commercial principles. The Tribunal keeping this legal position in view as a fact found that the income derived from the disputed heads comes within the ambit of profits and gains of business carried on by the assessee. No direct material has been placed before us on behalf of the revenue to challenge this position. O....