9911796707
TMI Blog1989 (7) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... istant Commissioner's order to allow registration to the assessee for the assessment years 1966-67, 1972-73, 1973-74 and 1974-75 ?" The assessee-firm was enjoying the benefit of registration from its inception. The firm also took over the running business of a jute press at Salkia and was utilising the same for the purpose of its business. Thereafter, in view of the closure of the jute processing centres in Bangladesh and also because of some internal trouble, the assessee leased out its commercial assets to one Salkia jute Pressing Co. (P.) Ltd. with the agreement of taking back the same at short notice. This fact led the Income-tax Officer to believe that the assessee had not carried on any business and, therefore, it was not entitled t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the lease period, what has happened to the press and other commercial properties taken over by the Roy Chowdhuries is not clear from the material already brought on record. Again, there is material available on the record as to how changes occurred in the assessee's firm right from its inception. Even the lease agreement entered into between the assessee-firm and Salkia jute Pressing Co. Pvt. Ltd. has not been considered by the income-tax authorities. In this view of the matter, we set aside the order of the Appellate Assistant Commissioner under appeal and restore the case once more to his file with a direction to give his decision afresh in the light of our foregoing observations. The Appellate Assistant Commissioner is further directed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nefit of registration was the carrying on of business by the firm and that, in the absence of that condition, the Income-tax Officer was justified in refusing to register the firm. He, therefore, wanted the Tribunal to set aside the Appellate Assistant Commissioner's order and restore that of the Income-tax Officer. It was submitted on behalf of the assessee that the Income-tax Officer conceded that the assessee exploited its commercial assets and, therefore, the Department should not have filed these appeals. The Tribunal upheld the findings and conclusion of the Appellate Assistant Commissioner. At the hearing, Mr. Mitra, learned counsel for the Revenue, submitted that no business activity was carried on by the assessee-firm ; accor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... may run it itself or lease it out. It cannot be said that, by leasing it out, the firm ceases to carry on a business. It still continues the business of earning profit from its commercial assets. There can be a partnership for carrying on the business of leasing out commercial assets. A commercial asset may be exploited in many ways. A particular mode or means of working the assets will have no bearing on the question whether the partnership would be entitled to registration. It is now well-settled that, where income is derived by exploitation of commercial assets and there is only a difference in the manner of exploitation, that is to say, instead of the user of the assets by the assessee himself, the assessee leases out the assets, the i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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