Business Income

Dividends income was held as income from business and not from other sources, because such income had been earned in accordance with the company's Memorandum and Articles of Association indicating company's objectives as investment in stocks, shares etc.

Receipt disclosed as financial assistance or qarz-e-hasana from overseas Pakistani was rightly declared by the taxpayer as income from business and had correctly set off brought forward business losses, there-against

Rejection of taxpayer's contention that "even brought forward unabsorbed depreciation losses which were included in the total amount of brought forward losses; and that taxpayer had duly filed such break up before Taxation Officer as well as First Appellate Authority, could be set off against income from other sources", was held to be of no legal effect.

At the time of booking of vehicles the company received the price in advance from its customers in foreign currency which was kept in foreign currency account till it was remitted to the foreign supplier

Such amount may yield profit or loss to the company depending upon the fluctuation in exchange rate

Gain accruing from the transactions in foreign currency bank account was essentially a business gain because the bank deposits from which the gain emanated were made in connection with and in course of normal business of the company

Appellate Tribunal directed that other income to the extent of exchange gain be treated as part and parcel of business income for the purpose of set-off of preceding year's accumulated business losses in circumstances.

Earning of interest by assessee, who had obtained loan for setting up an industry, and would have been manufacturing the product when it might have started the production was not to be deemed an "income from business" on the principle of commercial expediency.

Business income-Assesses partner in firms-No independent business-Share income from firms whether to be computed as profits of business-Amount spent by assessee to earn income from firms-Whether can be deducted from his share of profits

Indian Income-tax Act, 1922, Ss.10(1), (,2) & 23(5)(a)(i) [Iswardas Subhkaran v. Commissioner of . Income-tax (Income-tax Reference) No. 38 of 1952 overruled].Held, accordingly, that the respondent, who was a partner In four firms but did not carry on any independent business, was entitled to deduct from his share of the profits from the firms amounts paid as salary and bonus to staff, expenses for maintenance and depreciation of motor-cars and travelling expenses expended by him In earning the income from the firms.

Managing agency-Compensation or other payment received in connection with termination-Managing agent retiring voluntarily for consideration received from third party-Whether taxable-Whether income from managing agency business-Previous year for such income-Indian Income-tax Act, 1922, Ss. 2(11) & 10(5-A).

Business Income Business income-Allowances-"Current repairs" - Replacement of worn out parts of textile machinery by introducing Casablanca High Drafting System-Whether "repair" or capital expenditure-Business expenditure-Fitting up new windows to factory building-Development rebate-Claim disallowed on the ground that no new machinery was installed-Alternative claim before Tribunal for allowance for whole expenditure incurred as business expenditure-Maintainability-Indian Income-tax Act, 1922, S. 10 (2) (v), (xv).