1983 (7) TMI 30

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..... ce under s. 256(1) of the I.T. Act, 1961 (for short " the Act "), the Income-tax Appellate Tribunal, Indore Bench, Indore, has referred the following questions of law for the opinion of this court. " (1) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that the rent received by the assessee from the various godowns and factories was chargeab .....

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..... property ". The ITO negatived the contention of the assessee and assessed the rental income from various godowns and factories under the head " Income from property ". On appeal, the Commissioner (Appeals) and the Appellate Tribunal upheld the order of the ITO. The assessee also claimed deduction on account of expenses incurred by it in maintaining some of its branches which were closed. The ITO .....

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..... tion of commercial assets of the assessee and was incidental to the business of the assessee and, therefore, the rental income from the factories and godowns was liable to be assessed under the head " Income from business and profession " and not under the head " Income from property ". The contention is not well founded. It was not the case of the assessee before the Revenue and it has not been .....

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..... and factories was chargeable under the head " Income from property " and not as " income from business ". Question No. 1 is, therefore, answered in the affirmative and against the assessee. As regards question No. 2 it is not disputed that the assessee is being assessed as one unit in respect of its income from all its branches, some of which did not function in the accounting year. The income o .....

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..... and deducting therefrom all the expenses. The Tribunal was, therefore, not justified in disallowing the expenses incurred by the assessee in maintaining its branches, which did not function in the accounting year, in assessing the income of the assessee by erroneously calling such expenses as losses of those branches because as held by the Supreme Court the profits earned in all the branches of .....

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