COMMISSIONER OF INCOME TAX Vs. LAKSHMI CO

JUDGEMENT

(1.) THE Appellate Tribunal has referred the following three questions for the opinion of this court under s. 256(1) of the Act

(2.) THE assessee -firm was originally constituted under a partnership deed dated 8th March, 1965. There were changes in the constitution, and, therefore, another deed was drawn up on 22nd December, 1967. The firm was registered for the assessment year 1967 -68 and the registration was continued for 1968 -69. For the assessment year 1969 -70, the assessee filed the application for registration in Form No. II and Form No. II A before the ITO on October 15, 1968. The ITO was of the view that under para. 2 of the partnership deed dated 22nd December, 1967, the main business of the assessee was only to take buildings on lease and let them as warehouses and godowns and realise the rent therefrom. The above activity was not in his view a business activity.

(3.) THERE is a definition of the word "business" in s. 2(13) of the I.T. Act running as follows: "Business" includes any trade, commerce or manufacture or any adventure or concern in the nature of trade, commerce or manufacture.