1990 (8) TMI 80 - HC - Income Tax

Summary

The High Court of Orissa dismissed an application under section 256(2) of the Income-tax Act, 1961, regarding the classification of rental income from buildings owned by an unregistered firm engaged in the kendu leaf trade. The Tribunal held that the rental income was not from house property since the business was not closed. The Tribunal's decision was upheld, stating that nationalisation of the kendu leaf trade did not mean the business was closed. The application for reference under section 256(1) was refused, and no costs were awarded.