TaxTMI 
TaxTMI 
1982 (8) TMI 98
X X X X Extracts X X X X
X X X X Extracts X X X X
....State Government. During the relevant accounting year, the assessee received interest on the recoverable suspense, i.e., ad-interim purchase consideration from West Bengal State Electricity Board which had taken over all the units from the assessee-company. In the original return the assessee treated this interest as 'income from other sources' but in the revised return it claimed the same as income from 'business'. The ITO was of the opinion that the power supply business that was originally being conducted by the assessee had been entirely taken over by the State Electricity Board and the consideration therefor was nothing but a capital receipt. Therefore, any receipt received or receivable on interest receipt could not be treated as busi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....n existence of common management, common business Organisation, common administration, common fund and common place of business were held to be sufficient for allowing unabsorbed losses. Similarly, reference was made to another decision of the Supreme Court in B.R. Ltd. v. V.P. Gupta, CIT [1978] 113 ITR 647, wherein a loss in the business of import and sale of fabrics was held to be an allowable deduction against a subsequent income in export of cotton textiles, in view of the common management and control of the business. Again, reference was made to a judgment of the Allahabad High Court in CIT v. Rampur Timber & Turnery Co. Ltd. [1973] 89 ITR 150 and Raj Narain Agarwala v. CIT [1970] 75 ITR 1 (Delhi) for the proposition that carry forwar....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the relevant accounting year, the memorandum and articles of association of the assessee had been altered and money-lending had also been included among the aims and objects of the assessee. A money-lending licence had also been obtained by the assessee and actually some money had been lent and interest was received thereon by the assessee as would be apparent from the statement of accounts for the various years ending 31-3-1973, 31-3-1974, 31-3-1975, 31-3-1976 and 31-3-1977 respectively. Therefore, it could not be said that the assessee was not carrying on any business. Another important argument addressed on behalf of the assessee was that the authorities below had themselves accepted the assessee's statement of accounts as per the profi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ealers in or manufacturers of prefabricated and precast houses, buildings and erections and materials, tools, implements, machinery and metalware in connection therewith or incidental thereto and to carry on any other business that is customarily, usually and conveniently carried on therewith. (e) ii. To carry on the business of mill furnishers and of manufacturers, importers, dealers in and suppliers of all plant, machinery, stores, tools, implements and accessories. (e) iii. To carry on the business of manufacturers and importers of and dealers in agricultural implements and other machinery, tool makers and sellers, metal workers, boiler makers, mill-wrights, machinists, iron and steel converters, smiths, wood workers, builders, pai....