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TMI Blog2016 (6) TMI 1030X X X X Extracts X X X X X X X X Extracts X X X X ..... lated on 6th August, 2010 when the appeal was admitted. "i] Whether in the facts and in the circumstances of the case and on a true and proper interpretation of Section 24(b) of the Income Tax Act, 1961 was justified in law in disallowing the interest paid to the partners on the ground that there is no specific provision for claiming interest paid to the partners on their capital against the income from house property? ii] Whether the amount of interest paid to the partners from the partnership firm on account of interest though being assessed to tax can again be subjected to tax, being the same amount, as against the firm assessee ?" The questions formulated were not really pressed by Mr. Sen. He, on the contrary, submitted that aft ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s always been that the income arose out of house property. The new case now sought to be argued was never the case of the assessee either before the Assessing Officer or before the CIT(A) or before the learned Tribunal or even before this Court when the appeal was admitted. He submitted that in any event when the business has been closed down and there is nothing to show that there was any intention to resume the business, the income arising out of that can only be said to be an income arising out of house property. He in support of his submission relied on a judgement in the case of Universal Plast Ltd. Vs. C.I.T., reported in [1999] 237 ITR 454 wherein the following views were taken: " The general principles relating to income from lea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... business has been closed permanently or there was any intention of resumption of the business is essentially a question of fact and that has to be decided only on the basis of documentary evidence and such other evidences which may be adduced. Similarly, whether interest was authorised by the Partnership Deed is also a question, which was never considered by any of the statutory authorities. At the same time we find some substance in the submission that the income derived by the assessee by letting out the godown may be treated as a business income. In that view of the matter, the matter is remanded to the Assessing Officer. He will consider the questions (a) whether the income can be treated as an income arising out of business; and (b) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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