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TMI Blog1982 (5) TMI 35X X X X Extracts X X X X X X X X Extracts X X X X ..... red for the opinion of this court: " Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was right In holding that income from letting out of plant, machinery, building, etc., constituted an element of business activity and was, therefore, to be taxed under the head 'Business' instead of 'Other sources'? " The question relates to the lease money of Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mt. Vimla Devi, was made the managing director of the company. The company had in the meantime engaged the services of a miller and also secured electric power connection for the flour mill. It had also arranged with the Regional Director of Food for the supply of imported wheat. The company had also made arrangements for the appointment of selling agents and sub-agents and arranged for loan and c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Other sources ". The AAC, following the decision of the Income-tax Appellate Tribunal relating to the assessment year 1966-67, held that such income constituted an element of business activity and, therefore, need be taxed under the head Business " instead of " Other sources ". The Tribunal also took the same view. An identical question arising out of the order of the Tribunal in relation to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e out the factory on temporary lease for five years. This was nothing more than utilising the assets commercially and consequently was a business. The lease money received by the assessee constituted an element of business activity and has been rightly treated by the Tribunal as income under the head " Business ". We, accordingly, answer the question in the affirmative, in favour of the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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