1992 (12) TMI 4

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..... Tribunal has sent the above two references arising out of its order. Since the questions involved in both the cases are common the same are disposed of by this single order. In Reference No. 53 of 1981, the matter relates to the assessment years 1977-78 and 1978-79 and the following question has been raised : "Whether, on the facts and in the circumstances of the case, the Tribunal was justified .....

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..... erialise and some constructions were made on the land up to the level of plinth only. The land was let out to the Food Corporation of India and it was claimed that the receipt from the Food Corporation of India is assessable as income under the head "Income from other sources" and not under the head "Income from property". The Income-tax Officer did not accept the contention of the assessee and tr .....

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..... see challenged this matter before the Income-tax Appellate Tribunal where it was contended that a commercial asset for its exploitation has come into existence and, therefore, the amount received was business income and the direction to assess the same under the head "Income from other sources" is not justified. The Income-tax Appellate Tribunal came to the conclusion that the project did not mate .....

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..... tated that the business of the assessee-company was to take out the land and rent it out. The constructions which have been made thereon are incomplete and have not been shown to be of any use as commercial asset. A commercial asset is an asset which is used in a business. Land with plinth cannot be considered to be a commercial asset. A commercial asset may not be temporarily used but for that re .....

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..... change the character of the income which has been received only on account of storage facility which has been provided by letting out the land to the Food Corporation of India. In these circumstances, we are of the view that the Income-tax Appellate Tribunal was not justified in coming to the conclusion that the income from letting out of the land to the Food Corporation of India is the income f .....

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