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TMI Blog1992 (1) TMI 194X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee thereafter became a partner in a firm of Abkari Contractors by name, M/s J' Kobs. During the time the assessee was engaged in the carrying on of liquor distribution business, the assessee owned two vans, which primarily being utilised for transporting liquor for distribution. When these vans were not being utilised for such transportation, they were being hired out and hire charges were being realised by the assessee. These hire charges have all along been assessed as the business income of the assessee. Subsequent to 31st March, 1979 the assessee was forced to suspend distribution activity due to withdrawal of the licence, the assessee continued to hire out the two vans and hire charges received therefrom were continued to be as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... L. Simon (1991) 187 ITR 302 (Ker) : (1991) KLJ (Tax Cases) 641. The learned Departmental Representative strongly supported the orders of the authorities below. 3. We have perused the copies of the accounts and other papers filed before us. We have noted it as a fact that the assessee while engaged in the business of distributing liquor had hired out its vans whenever they were not in use for transportation of liquor. Subsequent to 31st March, 1979 these vans continued to be hired out. These vans were acquired originally in connection with the business of distribution of liquor and the activity of hiring out these vans constituted very much a part of the business of liquor distribution. The finance for purchase of these vans came from the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mill in a different locality in the same town. On the closure of the oil mill, retrenchment compensation was paid to the employees with the condition that if the mill was re-started, the workers would be taken back. The Kerala High Court noted the finding of the Tribunal that the oil mill was not a separate business and that by virtue of the fact that there was unity of control between the businesses of the assessee, all the activities including the running of the oil mill constituted one business. Although the assessee was maintaining separate set of accounts for its activities, the Court concluded that retrenchment compensation paid with reference to the closure of the oil mill would be allowable business expenditure against the other con ..... X X X X Extracts X X X X X X X X Extracts X X X X
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