CIT Vs. HOTEL RATANADA INTERNATIONAL

JUDGEMENT

(1.) THE Income Tax Appellate Tribunal, Jaipur Bench,Jaipur, has referred the following question for answer by the High Court: Whether, on the facts and in the circumstances of the case and in law, the Tribunal was justified in holding that the income of the assessee should be assessed under the head 'Income from business' instead of 'Income from property' as assessed by the Income Tax Officer?

(2.) M /s. Hotel Ratanada International Pvt. Ltd., Jaipur (hereinafter referred to as 'the assessee') was incorporated on 22 -4 -1978. Inter alia, Clause (3) of the memorandum of association provides that one of the objects of the company is to carry on all or any of the business in respect of land and/or properties, dwelling houses, hotels, motels, shops, offices, industrial estates, agricultural land, etc.

(3.) IT was not disputed before the assessing officer that in the immediately preceding assessment year, i.e., for the assessment year 1980 -81, on similar facts, the rental income from the flats and office was held to be the income under the head 'Income from property'.