2001 (9) TMI 33

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..... the assessee has been treated as business income by the Tribunal. The correctness of that decision has been called into question by the Revenue in this reference. The assessment year is 1985-86. The business of the assessee is that of being maritime agent. No part of the premises, from which it received rent in the assessment year, was used for its business purpose. This court, in a case concern .....

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..... nt sources falling under specific heads has to be computed for the purpose of taxation in the manner provided by the appropriate section. If the income from a source falls within a specific head set out in section 6, the fact that it may indirectly be covered by another head will not make the income taxable under the later head." In that case which arose under the 1922 Act, it was held by the cou .....

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..... yam and that plant had been leased out by the assessee as it had difficulty in obtaining silk yam during the chargeable accounting period, viz., January 1, 1943 to December 31, 1943. The question which the court was required to consider therein was as to whether that income of the assessee was chargeable to excess profits tax as profits of business or whether it was income from other sources and w .....

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..... ot a question which arose in that case. What was said there in the context of the excess profits tax cannot be applied to the case of income derived from house property by an assessee, which also carries on business. The decision in Shri Lakshmi Silk Mills Ltd.'s case [1951] 20 ITR 451 (SC) was not understood by the Supreme Court as being applicable to income from house property under the Income- .....

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..... re. The Tribunal was clearly in error in holding that the rental income received by the assessee from properties owned by it and let out to others was not income from house property and that the same was required to be treated as business income. The question' referred to us is, therefore, answered in favour of the Revenue and against the assessee. The Revenue shall be entitled to cost in the su .....

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