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TMI Blog2009 (9) TMI 1X X X X Extracts X X X X X X X X Extracts X X X X ..... shna , R.K. Upadhyay and S. Chopra Respondent's Counsel - S.O.P. Agarwal and Rohit Agarwal JUDGMENT The present appeal filed under Section 260-A of the Income Tax Act, 1961 (hereinafter referred to as "the Act") arises out of the order of the Income Tax Appellate Tribunal, Delhi dated 30th June.1999. It has been admitted, vide order dated 20.8.2004, on the following substantial questions of law :- "1.Whether on the facts and circumstances of the case, the Tribunal was justified in upholding the order of the CIT(A) directing the Assessing Officer to treat rental income from letting ut of warehouses as income from buisness? 2. Whether on the facts and circumstances of the case, the Tribunal was justified in upholding the orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een closed down and the premises has been let out on rent it would be treated that the assessee has closed down his business and, therefore, the income from letting out of the property is income from property and not from business. Sri Rohit Agarwal, on the other hand submitted that the business of the assessee, which was running flour mill was still continuing and certain surplus place was let out, that too, for a short period.? We find that the Tribunal, in paragraph 13.7 of the order, has held as follows: "13.7. The facts of the present case clearly show that the assessee is carrying on the business of running a flour mill. It is an undisputed fact that the assessee company used the entire building for its flour mill business upto ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssing Officer has himself taken the income from warehousing as business income in those two years. This factual position has not been disputed by the Ld. D.R. The aforesaid facts clearly indicate that the judgment of Hon'ble Supreme Court in the case of Universal Plast Ltd. (supra) instead of supporting the Revenue's case, clearly supports the view taken by the CIT(A) holding that income from letting of warehouses is a part of business income of the appellant." From a perusal of the order of Tribunal reproduced above, we find that the business of the assessee which was running the flour mill in question has not been closed and certain surplus godowns was let out. That being the position, the income from letting out would be clearly fa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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