As per IT Act. amount written back out of the bad debts and miscellanious income are to be considered as business income

Last updated: 20 July 2012

Court :
INCOME TAX APPELLATE TRIBUNAL

Brief :
Briefly stated assessee is a Member of Stock Exchange, Mumbai. Vide order dated 4.4.2001 assessee was debarred from undertaking any fresh business as a stock broker or merchant banker till further orders. This order was confirmed by SEBI vide order dated 21-06-2001. AO was of the opinion that assessee was not carrying any business as it was prohibited from undertaking any fresh business, therefore, the expenditure claimed toward business expenditure cannot be allowed. The other income shown by assessee was brought to tax under the head “income from other sources” without assigning any reason by AO.

Citation :
ACIT Central Circle-40 Room No.653, 6th Floor, Aayakar Bhavan, MK Road Mumbai 400020 (Appellant) Vs VN Parekh Securities Ltd Bhupen Chamber, Gr. Floor 9 Dalal Street, Fort Mumbai PAN No. AAACV 5664 J (Respondent)