Income is chargeable as profits of the business, only if the business is carried on by the assessee at any time during the previous year. However, there are certain exceptions to the above rule. Which out of the following is not an exception?
1
Recovery against bad debts
2
Sale of capital asset used for scientific research
3
Recovery against any loss, expenditure or trading liability earlier allowed as a deduction
4
Recovery against any loss, expenditure or trading liability earlier not allowed as a deduction