TMI Blog1979 (12) TMI 99X X X X Extracts X X X X X X X X Extracts X X X X ..... 74. After deduction the rental income was determined at Rs. 22,959. This amount was also added as income of the assessee from other sources. 4. The assessee took-up the matter in appeal. Before the ld. CIT (Appeals), it was submitted on behalf of the assessee that the assessee company was allotted land by the Director of Industries for setting-up of Auto Lamp Factory. However, till the end of the previous year relevant to the asst. yr. 1977-78, the project did not materialise. The assessee made some constructions on the land which was brought upto plinth level only. Thereafter the said land was let out to FCI and there was rental income in both the years. According to the assessee, the rental income was really income from business. The as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 77-78. The amount received from the Food Corporation of India against letting out of plinth was really business income of the assessee. The authorities below were not correct in holding that the income was to be assessed under the head 'income from other sources'. The ld. counsel placed reliance on the decisions in the cases of Prem Chand Jute Mills Ltd(1). Kathihar Jute Mills (P) Ltd(2). ICI (India) Pvt. Ltd(3). New Savan Sugar and Gur Refining Co. Ltd(4). Thus it was contended that the ld. CIT was wrong in holding that income should be assessed under the head 'income from other sources.' 6. The ld. Deptl. Representative supported the order of the ld. CIT and contended that the business for which the land was taken was not se up in years ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt. The assessee has treated this asset as its commercial asset. In the years of account, the said commercial asset was exploited by the assessee. It is common ground that in both the years under consideration the said property was let out to the Food Corporation of the India on rent. The entire property and the construction upto the plinth level was let out to the said lessee. It means that in the years of account the assessee had every intention to exploit its commercial asset and with these intention it leased out the constructed area to the Food Corporation of India. According to cl. 22 of the Articles of Association the appellant company had right to lease out property on rent. So the appellant in both the years has exploited commercia ..... X X X X Extracts X X X X X X X X Extracts X X X X
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