COMMISSIONER OF INCOME TAX Vs. BISHWANATH ROY

JUDGEMENT

(1.) THE assessee in these two references under Section 256(1) of the I.T, Act, 1961, had been assessed in the status of an individual. THE assessment years are 1968-69 and 1969-70. THE assessee was the owner of Ganeshdih Colliery. It was leased out to Prabhulal Agrawal and Magilal Sharma. THE assessee returned an income of Rs. 34,533 as income from business. In view of the lease in favour of the managing contractor, the claim of income from business was rejected by the ITO and it was held to be income from "Other sources". His view was affirmed by the AAC as well both the authorities relying upon New Savan Sugar and Gur Refining Co. Ltd. v. CIT [1969] 74 ITR 7 (SC). THE Appellate Tribunal, however, took a different view of the matter and accepted the claim of the assessee. THE Tribunal recorded its conclusions in one short paragraph which may be reproduced here ;

(2.) THE appeal of the assessee was thus allowed by the Tribunal. At the instance of the Commissioner of Income-tax, a consolidated reference has been made to this court. THE question of law referred to us reads as under:

(3.) FOR the reasons stated above, I am definitely of the view that the Tribunal was not correct in holding that the income derived by the assessee was taxable under the head ."Business" and not under the head" Other sources". The question referred to this court must, therefore, be answered in favour of the Revenue 'and against the assessee. The reference is thus disposed of with costs. Hearing fee Rs. 250 payable by the assessee to the Revenue.