TMI Blog1926 (4) TMI 1X X X X Extracts X X X X X X X X Extracts X X X X ..... to do under the provisions of its memorandum and articles of association. I think it is clear that the assessees cannot come to Court and ask for deductions on the footing that they are carrying on a business of rice milling. The business they are carrying on is that of lessors of a building which derives its lettable value from the fact that it is equipped with certain machinery which it available for the purpose of milling rice. And of course it is on that lettable value that the lessors have been assessed. It seems to me that this is not infrequent case of the same building and its contents being taxable both in the case of the lessors and the lessees. Different deductions will be allowable in the case of the lessors and the lessees. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see as may in any case or class of cases be prescribed. The assessee here is a limited company formed primarily for the purpose of milling rice; and to carry out that object the company had acquired buildings, mill machinery and plant. They did not however carry on that business. There is a provision in the memorandum of association authorising the directors to lease out the mill to third parties for rent if it is beneficial to the company to do so; acting under this authority the mill was leased out to certain lessees for a fixed annual rent for a period of 3 years. The arrangement was that the lessees were to work the mill and take the profits, and do the necessary repairs to it and hand it back at the end of the period to the lessor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt of the business of the lease; that part of the rent which represents the loss due to depreciation is not really income to the lessors but is meant to make good the loss on capital value, of the machinery. I agree with the learned Chief Justice in holding that the assessees here are entitled to a deduction for depreciation of their buildings, machinery and plants which under the lease they have to bear. What that amount properly is for the year of assessment is for the taxing authorities to find. My answer to the reference on the facts of this case is as stated above. Beasley, J. The only point upon which I had any doubt was whether it could be said that the assessees were themselves carrying on business, because it is not only ne ..... X X X X Extracts X X X X X X X X Extracts X X X X
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