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TMI Blog1985 (2) TMI 84X X X X Extracts X X X X X X X X Extracts X X X X ..... for the assessee submitted that the losses pertained to 1973-74 and they were carried forward right upto 1978-79 in spite of the fact that the factory was leased out even during those periods. The contention of the Revenue during this year has been that since the factory in question was leased out for a period of eleven years, it was not the same business and as such losses pertaining to earlier ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e same asset. As per Supreme Court in Lakshmi Silk Mills, it has been held therein on the basis of fact that assessee was a manufacturer of silk cloth and because yarn was not available and the plant could not be used, the same was let out to a person. The dispute was whether income from rent was profit of business or income from other sources. What their Lordships held was that it was a part of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f commercial asset does not necessarily mean exploitation by the assessee himself at all material times. The assessee may temporarily cause it to be exploited by another person against payment of consideration and for this purpose may execute a lease for a fixed period even with option to renew. 3. But, in order that the income derived from the lease should be taxable it must be shown that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ur finding M/s Prem Chand Jute Mills Ltd. (1978) 114 ITR 769 (Cal) in which case of Shri Lakshmi Silk Mills Ltd. (1951) 20 ITR 451 (SC) was relied on. In this case even case of Seth Banarsi Dass Gupta (1977) 106 ITR 559 (All) relied upon by the ld. Departmental Representative stands distinguished. The contentions, therefore, those of the assessee are accepted. 7. In the result, assessee's appea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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