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TMI Blog2004 (11) TMI 71X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Tribunal. In the result we answer the above question of law in the affirmative, i.e., against the Department and in favour of the assessee. - - - - - Dated:- 19-11-2004 - Judge(s) : R. K. AGRAWAL., P. KRISHNA. JUDGMENT The judgment of the court was delivered by P. KRISHNA J.- The Income-tax Appellate Tribunal at the instance of the Commissioner of Income-tax, Agra, has referred the following question of law under section 256(1) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), for opinion to this court: "Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the income from letting out of a cinema hall (Sant Talkies) together with the machinery therein was rig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y". He rejected assessee's claim to be assessed on the said income under the head "Business". The Income-tax Officer computed the income accordingly. But he allowed the depreciation on the electric fittings, air conditioner, furniture, sanitary fittings, machinery, electric fans, etc. The Appellate Assistant Commissioner in appeal against the assessment order found that the income from letting out the Sant Talkies altogether with machineries thereon has to be accepted as income from business. He also found that the machinery hired out was inseparable from the leasing out of cinema hall. The said order of the Appellate Assistant Commissioner has been confirmed by the Tribunal in second appeal. Heard Shri Dhananjay Awasthi, learned standing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... same to be met by the tenant. (v) All taxes relating to the building and user of the assets, referred to above, was the exclusive liability of the tenant. (vi) The 'tenancy lease agreement' could be terminated by either party by giving three months notice in writing." The Tribunal has also found that the agreement under which the property was let out was a composite one. It may be mentioned here that the Tribunal found that the lessee had accepted the assessee as a successor to the agreement with the dissolved firm. The lease rent continued to be paid for the building as well as machinery at Rs. 4,000 per month for each. Learned standing counsel for the Department could not point out any legal or factual error in the order of the Tri ..... X X X X Extracts X X X X X X X X Extracts X X X X
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