COMMISSIONER OF INCOME TAX Vs. RAMDAS AND SONS

JUDGEMENT

(1.) THESE two references under Section 256(1) of the Income-tax Act, 1961, are at the instance of the Revenue. The question of law referred to this court for opinion is :

(2.) THE material facts are as follows :

(3.) AS noticed above, the Tribunal took the view that even though the commercial activities had come to an end and the premises had been let out on rent, the premises did not lose its character as commercial assets. I have reservations in accepting the view to be correct. The fact that the premises along with the plant and machinery installed therein were being used for business and was, therefore, a commercial asset at one point of time cannot be conclusive of the fact that the asset would retain the same old character for all times to come. It should be kept in mind that the Income-tax Act provides for a separate specific head with respect to income accruing from ownership of house property.