COMMISSIONER OF INCOME TAX Vs. HALAI NEMON ASSOCIATION

JUDGEMENT

(1.) THE question referred to us at the instance of the Revenue is "whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that the income derived by the assessee from letting out of the building along with chairs, mike, etc., on the occasions of marriage and other functions, should be assessed only under the head "Income from business" and not under the heads "Income from house property" and "Income from other sources" ?"

(2.) THE assessment years are 1980-81 and 1982-83.

(3.) THE Supreme Court in the case of CIT v. National Storage Private Ltd. [1967] 66 ITR 596 has cited with approval the decision of the House of Lords in the case of Governors of the Rotunda Hospital v. Coman [1920] 7 TC 517 ; [1921] 1 AC 1, wherein the hospital derived a substantial income from letting out the rooms in another wing of the hospital for public entertainments, concerts, etc., for varying periods and applied the income to the general maintenance of the hospital. THE said rooms were let upon terms which included the provision of seating, heating and attendance, but an additional charge was made for the gas and electricity consumed. It was held by the House of Lords in that case that the profits derived from the letting of the rooms in another wing of the hospital were assessable to income-tax.