1986 (10) TMI 36

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..... 2, as common questions of law arise in all these references: As directed by this court under section 256(2) of the Income-tax Act, 1961, the Income-tax Appellate Tribunal, Nagpur Bench, Nagpur, has referred the following questions of law to this court for its opinion : " (1) Whether, on the facts and in the circumstances of the case, the income of the assessee-firm was assessable under the hea .....

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..... Officer held that the income received by the assessee from the lease of the rice mill and the cinema theatre was not business income but was assessable as " income from other sources ". The Income-tax Officer further held that in this view of the matter, the question of granting continuation of registration to the assessee-firm did not arise and the claim of the assessee for continuation of regis .....

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..... aforesaid questions of law to this court for its opinion. The main question for consideration is in what cases income from letting out a business asset can be held to be assessable as business income. A number of decisions were cited before us but it is not necessary to refer to all these decisions because, in our opinion, each case must be decided on its own circumstances, keeping in view the f .....

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..... remain and be treated as a commercial asset and exploited as such. (4) This intention of the lessor referred to above has to be ascertained from the cumulative effect of all the terms of the lease and other material circumstances. " Now, in the instant case, the Tribunal has found, after appreciating the material on record, that the assets in question, though given by the assessee on lease, d .....

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..... ssessee-firm. For all these reasons, our answer to the first question referred to this court is that the income of the assessee-firm was assessable under the head" Business income " and not under the head " Income from other sources".Our answer to the second question referred to this court is that, on the facts and in the circumstances of the case, the Tribunal was right in law in granting conti .....

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