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TMI Blog1988 (11) TMI 147X X X X Extracts X X X X X X X X Extracts X X X X ..... ty is assessable under the head income from property and not from other sources. 2. The relevant facts are that the assessee company was incorporated on 22nd April, 1978 and the assessee's Memorandum of Association (cl. 3) reveals that the assessee's one of the objects was to carry on all or any of the business in respect of land and/or properties, dwelling houses, hotels, shops, offices, indust ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the authorities below. Shri Kothari submitted that as clause-3 of Memorandum of Association is very clear and according to that the assessee is empowered to carry on the hotel business or any business in land etc. Which cover the rental income also. Once the rental income is taken as income from business, the expenses so claimed for running the business are to be allowed as deduction and interest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Now I hold that the assessee was carrying on business in the year under consideration, the deductions for carrying on business claimed by the assessee is allowed. The interest under s. 139(8) and s. 217 is consequential and the ITO should consider it after giving effect to the appellant order. 6. In the result the appeals of the assessee are allowed for both the years. - - TaxTMI - TMITax - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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