Law:

Section:

Section 28(i) of the Income-tax Act, 1961 - Business income - Chargeable as - Assessment year 1996-97 - Assessee included income from commission and service charges in its business income - Assessing Officer treated said part of income as income from other sources on ground that business of assessee was not to earn commission or to provide service - Whether merely because assessee was a manufacturer, it could be said that it could not have business income from commission or service charges - Held, no - Whether, therefore, income from commission and service charges was business income and same could not be treated to be income from other sources - Held, yes Section 43A of the Income-tax Act, 1961 - Foreign currency, rate of exchange, change in - Assessment year 1996-97 - Assessee claimed depreciation on increased price of machinery due to fluctuation in foreign exchange rates - Assessing Officer held that since actual payment of increased price had not been made, assessee was not entitled to depreciation thereon - On appeal, Commissioner (Appeals) as well as Tribunal allowed assessee's claim holding that assessee was entitled to adjust cost of acquisition in accordance with provisions of section 43A - Whether any question of law did arise from Tribunal's order - Held, no Rajesh Sethi for the Appellant. ORDER Adarsh Kumar Goel, J. - The revenue has preferred this appeal under section 260A of the Income-tax Act, 1961 ('the Act'), against the order of the Income-tax Appellate Tribunal, Chandigarh Bench 'A', Chandigarh passed in ITA No. 787/Chandi/2002, dated 27-6-2005, for the assessment year 1996-97, proposing to raise substantial questions of law:- "(i)Whether on the facts and law, the Hon'ble Income-tax Appellate Tribunal was justified in ignoring the respondent as only a manufacturer as it did not have the object of earning commission and service charges as per the Memorandum of Articles of the respondent company? (ii )Whether on the facts and law, the Hon'ble Income-tax Appellate Tribunal was justified in ignoring the proviso to section 43A of Income-tax Act, in respect of liability on account of foreign exchange rate fluctuations on the basis of the time of…

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