COMMISSIONER OF INCOME TAX Vs. RAMDAS AND SONS

JUDGEMENT

(1.) THIS is an income-tax reference under Section 256(1) of the Income-tax Act, 1961. The following question is referred by the Tribunal for the opinion of this court :

(2.) THE assessee is a firm deriving income from contract work. THE assessee is also owner of oil mill premises and though the oil mill is closed for the last 35 years, the quarters attached to the factory of the oil mill is let out to different tenants. THE income derived from the let out portion of the oil premises from different tenants has been clubbed by the assessee in his business income derived from other sources. THE Income-tax Officer the Appellate Commissioner and the Tribunal held that since the business activity of the oil mill is closed since last 35 years, therefore, income derived from factory premises as rent from tenants the same is to be assessed to tax as business income.

(3.) OUT of these decisions, two Supreme Court decisions precisely deal with the points in issue. Thus the matter in issue is fully covered.