9911796707
TMI Blog2003 (1) TMI 13X X X X Extracts X X X X X X X X Extracts X X X X ..... assessed the income derived by the assessee as that of the income from the property and not of business. We are of the opinion that the assessee is not entitled for any registration and continuation of the same in terms of section 185(1)(a) - Questions are answered in favour of the Revenue and against the assessee - - - - - Dated:- 10-1-2003 - Judge(s) : B. SUDERSHAN REDDY., N. V. RAMANA. JUDGMENT The judgment of the court was delivered by B. SUDERSHAN REDDY J. - The Income-tax Appellate Tribunal, Hyderabad Bench "A", referred the following two questions for our opinion: "1. Whether on the facts and in the circumstances of the case and in law, the Appellate Tribunal was justified in holding that there was a valid partnership i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment years 1979-80 and 1980-81. Consequent to the said orders, the assessing authority passed an order for 1979-80, which was upheld in the appeal by the Appellate Assistant Commissioner. For the assessment year 1981-82, the Income-tax Officer assessed the rental income as income from the house property and the same was also upheld by the Commissioner of Income-tax (Appeals). As against the said order of the Commissioner of Income-tax (Appeals) for 1981-82 and that of the Appellate Assistant Commissioner for 1979-80, the assessee preferred I.T.A. Nos. 454 and 455 of 1984 and I.T.A. Nos. 1527 and 120 of 1985. Thus the dispute relates to the assessment years 1979-80, 1980-81 and 1981-82. It was mainly contended before the appellate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 986] 158 ITR 773 and CIT v. Veerabhadra Industries [1999] 240 ITR 5. We need not elaborately refer to the principle and ratio laid down in Phabiomal and Sons [1986] 158 ITR 773 (AP), since the same is approvingly c referred to in the subsequent judgment in Veerabhadra Industries [1999] 240 ITR 5 (AP). This court, after an elaborate consideration of the matter, while considering the question as to whether the assessees therein are entitled for registration under section 185(1)(a) of the Income-tax Act, 1961 (for short "the Act"), observed that "the expression 'business' contemplates continuous activity from year to year". The court in the said judgment observed that: "there is no evidence that the assessee is continuing the activity of con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unable to agree with the submissions made by learned counsel for the assessee. This court in clear and categorical terms held that the expression "business" contemplates continuous activity from year to year. It is not the case of the assessee that it is in the business of construction of godowns and letting them out from year to year either to the Food Corporation of India or to any other interested person or persons, as the case may be. Therefore, on the basis of the evidence that is made available, it is not possible to hold that the assessee is continuing the activity of construction of godowns and letting them out from year to year. With regard to the question as to what income amounts to income from the business, this court in CIT v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facilities like power and water to the craftsmen-entrepreneurs to engage themselves in the crafts in which they are trained. This court accordingly, upheld the view taken by the Tribunal that the whole of the operations undertaken by the assessee therein involved in each letting of the property is akin to the nature of business or trading operation. In the instant case, there is no such evidence available on record to suggest that the assessee had undertaken any such systematic business activity of construction of godowns and letting them out as business property. In the circumstances, we are of the considered opinion that the Assessing Officer rightly assessed the income derived by the assessee as that of the income from the property ..... X X X X Extracts X X X X X X X X Extracts X X X X
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