9911796707
TMI Blog1996 (9) TMI 16X X X X Extracts X X X X X X X X Extracts X X X X ..... Appellate Tribunal to come to the conclusion that the rent received by the appellant was income from business and not income from property? (3) Whether the Appellate Tribunal was right in making an alleged classification based on some English decisions and in coming to the conclusion that the rent received by the appellant in the instant case fell under the second category and hence income from business?" Even at first blush, these questions are all questions of fact pure and simple. An amount of Rs. 2,21,068 was received by the assessee from the Director-General of Supplies and Disposals in pursuance of the contract (annexure "D" at page 28). The question is, as to whether this amount is income from business or income from property, w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and responsibilities of the clearing agents and in the process, even an eventuality is provided for holding incoming and outgoing cargoes at the port pending despatch. In other words, reading the document, nothing would remain doubtful that the assessee comes under the obligation thereby to do all necessary things in the process of clearing and forwarding under the document. The document also provides for situations of storage, port charges and other consequential and incidental situations inevitably and necessarily connected with the clearing and forwarding activity under the document in question. If in the process of the activity of the assessee as a clearing and forwarding agent he has demanded and the Director-General of Supplies and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er charge under the head "Income from house property". No efforts are needed to find out the error in the approach, even if a cursory perusal of the document between the parties is undertaken. The Revenue was required to approach the Income-tax Appellate Tribunal, Cochin Bench. The Tribunal has taken into consideration the document (annexure "D") dated December 29, 1975. It was observed by the Tribunal that the contract is a comprehensive one and it deals with all material aspects of clearing and forwarding operations and the duties and responsibilities of the clearing agents. The Tribunal has in extenso referred to clauses 5, 7, 9, 10, 12 and other clauses of the agreement. It is on the basis of the careful examination of the agreement, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unt in regard thereto as incidental to the obligation under the contract in question. Even otherwise, reading it in the manner in which the Tribunal has approached the question, we have no hesitation to record that left to ourselves, we would not have reached any other conclusion in the context of undisputed facts appearing in the statement of case. Incidentally, this court in CIT v. Malabar and Pioneer Hosiery (P.) Ltd. [1996] 221 ITR 117 (in which one of us---myself---was a party delivering the judgment), had occasion to consider the question of an assessee deriving income from a commercial asset connected with the activity although the income under consideration may emanate from a document relating to the transfer of property. For the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
