SCINDIA POTTERIES Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) AT the instance of assessee, following question has been referred for opinion of this Court by the Income tax Appellate Tribunal, Delhi Bench (in short, the 'Tribunal'), under S. 256(1) of the IT Act, 1961 (in short, the 'Act') :

(2.) THE factual position in a nutshell is as follows :

(3.) WE find that there is no material on record, as observed by the Tribunal, about the intention to revive or resume business activities and the godowns were constructed for business of manufacturing the pottery. Manufacture of pottery activities were totally stopped during the previous year ending 30th June, 1970, relevant to 1971 72 and there was no revival till the assessment year in question and, therefore, factual finding was recorded by the Tribunal that there was no revival and there was no apparent intention to revive the business. The godowns had ceased to be commercial assets when they were let out to other concern on rent. That being the position, Tribunal's conclusion is in order. Our answer is, therefore, in the affirmative in favour of the Revenue and against the assessee.