TMI Blog2016 (6) TMI 1030X X X X Extracts X X X X X X X X Extracts X X X X ..... ime we find some substance in the submission that the income derived by the assessee by letting out the godown may be treated as a business income. In that view of the matter, the matter is remanded to the Assessing Officer. He will consider the questions (a) whether the income can be treated as an income arising out of business; and (b) whether the payment of interest to the partners can be allowed as a permissible deduction. He will decide these questions, after taking such evidence as the assessee may adduce, in accordance with law. The questions formulated at the time of admission of appeal have now become redundant and they need not be answered. - ITA 11 of 2010 - - - Dated:- 21-6-2016 - Girish Chandra Gupta And Asha Arora, JJ. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eally is a business income. In support of his submission he drew our attention to a judgement in the case of C.I. T. vs. Margarine and Refined Oils Co. Ltd., [2006] 282 ITR 576 [Karn] wherein the following views were taken: The manufacturing unit which was a capital asset of the business was leased out to a lessee carrying on the same business out of which the assessee derived income by way of rent. The said rental income was income from business. He submitted that the payment of interest to the partners was authorised by the Partnership Deed at the rate of 12% p.a. and it is at that rate that interest was paid to them. This should have been allowed under Section 40(b)(iv), which provides as follows: [iv] any payment of inter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m leasing or letting out of assets would fall under the head Profits and gains of business or profession ; (2) it is a mixed question of law and fact and has to be determined from the point of view of a businessman in that business on the facts and in the circumstances of each case, including true interpretation of the agreement under which the assets are let out; (3) where all the assets of the business are let out, the period for which the assets are let out is a relevant factor to find out whether the intention of the assessee is to go out of business altogether or to come back and restart the same; (4) if only a few of the business assets are let out temporarily, while the assessee is carrying on his other business activities, then it ..... X X X X Extracts X X X X X X X X Extracts X X X X
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