TMI Blog2014 (11) TMI 895X X X X Extracts X X X X X X X X Extracts X X X X ..... of such income as being assessable under the head “income from house property” - whether any income falls under one head or the other has to be decided according to the common notions of practical and reasonable man for the act does not provide any guidance in the matter and that no general principle could be laid down which is applicable to all cases and each case has to be decided on its own facts and circumstances - assessee has not let out the constructed building but is providing complex service oriented activities - The return received by the assessee is not the income derived from the exercise of property rights only but is derived from carrying on an adventure in the nature of trade - If the entire conduct and series of activities ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of warehouses/godowns together with various services rendered to the occupant did not constitute a business activity of the appellant and as such the income arising therefrom was not assessable under sec. 28 of the Income-tax Act, 1961 as business income? Whether, on the facts and circumstances of the case, the Tribunal could have arrived at conclusion that the income from letting out of the warehouse/godown was assessable as property income under sec. 22 of the Income-tax Act, 1961? 2. The appellant, a partnership firm, is engaged mainly in the business of letting out warehouses/godowns for storage purposes and also is in the business of transportation of fertilizers. The appellant firm had filed its return of income for the assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ps and Warehouse Society Ltd reported in [2003] 264 ITR 289 wherein it is held that nominal rent for godown and shops constitutes income from other sources and that the income derived by the assessee by permitting use of auditorium by collecting charges would fall under the head business income . It is held that the income which was derived by fulfillment of the object of the assessee to provide amenity to its members shall be construed as business income. It is further held that provision of canteen had to be construed as service planned and provided by the assessee as an amenity to facilitate trade and income from such canteen had therefore to be construed as business income. 4.2 Mr. Divetia has also placed reliance on an unreported d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd M/s. Saptarshi Services (P) Limited reimbursed them later. The assessee is having EPABX machine which facilitates providing telephone services to the occupants of the service centre. Besides this, the assessee is providing various services to the occupants like services of lift, services of receptionists, secretarial services, data processing, conference room, etc. The object of the said complex is that facilities to be provided with the building. Thus the assessee is providing a working place along with the various facilities. Against such decision, Revenues appeal was dismissed by this Court. The decision of Supreme Court in case of Sambhu Investment (P) Limited [Supra] was rendered in different facts-situation. In such case, the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned from Indian Potash Limited cannot by any strength of imagination be said to be godown rent claimed to be assessable as business income. 6. We have carefully considered the submissions made by learned advocates for both the sides. The ground in these appeals relates to the head of income as to under which head warehousing charges (rent) is assessable. The assessee in the present case had given on hire plinth area i.e. semi pucca property to Indian Potash Ltd and later on the said area was covered by four walls and roof to give protection against rain, heat etc. There are as many as seventeen partners (with ten admitted subsequently) and they have made huge investment in the firm. The partnership is formed to carry on business in trans ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in complete agreement with the reasonings adopted and findings arrived at by the Tribunal. It is a settled law that whether any income falls under one head or the other has to be decided according to the common notions of practical and reasonable man for the act does not provide any guidance in the matter and that no general principle could be laid down which is applicable to all cases and each case has to be decided on its own facts and circumstances. Given the set of facts and circumstances in the present case, we find that the decisions cited by learned advocate for the assessee shall not be applicable herein. The assessee herein has not let out the constructed building but is providing complex service oriented activities. The return rec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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