COMMISSIONER OF INCOME TAX Vs. K NARENDRA

JUDGEMENT

(1.) AT the instance of the Revenue, the following question has been referred to this court for opinion under Section 256(1) of the Income -tax Act, 1961 (for short the 'Act'), by the Income -tax Appellate Tribunal, Delhi Bench -B (in short the 'Tribunal') :

(2.) FOR the assessment year 1965 -66, the assessed received certain amounts on letting out of imported rotary press which he had imported. The machine was not used by the assessed in his own business but was let out on a monthly rent. It is to be noted that the assessed was not carrying on any business during the year. In the aforesaid background the question arose whether the income be treated as income from business or from other sources. The Tribunal held that the income has to be treated as business income. On being moved a reference was made to this court as aforesaid.

(3.) THERE was no appearance on behalf of the assessed when the matter was called.