TMI Blog1996 (4) TMI 1X X X X Extracts X X X X X X X X Extracts X X X X ..... , coffee curing works and so on - Civil Appeal No 6108 of 1983 with Civil Appeals Nos 6109, 6110, 6111, 6112, 6113 and 6114 of 1983. - - - Dated:- 10-4-1996 - B. P. JEEVAN REDDY. and S. SAGHIR AHMAD. JUDGMENT The judgment of the court was delivered by B. P. JEEVAN REDDY, J.-- This batch of appeals preferred against the judgments of the Madras High Court (see [1981] 131 ITR 223 and 207) raises a common question. The assessee is the same in all the appeals ; only the assessment years are different. The following three questions were referred for the opinion of the High Court under section 256(1) of the Income-tax Act : (at page 224 of 131 ITR) : " (1) Whether, on the facts and in the circumstances of the case, the conclusion of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpany was managed by the managing agents Kothari Mehta and Company Limited. They were appointed for a period of twenty years with effect from January 1, 1955, under an agreement dated March 23, 1950. There was a further agreement on March 17, 1960, and another on October 6, 1965 practically on the same terms. Until the assessment year 1963-64, the appellant used to work out the net income from taxable and non-taxable sources separately without taking into account head office expenses and then apportion the head office expenses including managing agency commission between the three categories of income, viz., wholly taxable income, partially taxable income (from the tea estates) and wholly exempted income (from the coffee estates) in the pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ency commission was called for in proportion to the expenditure incurred on those activities. The matter was remitted to the Income-tax Officer to work out the details. Thereupon the assessee applied for and obtained the reference under section 256(1). The issue arising from questions Nos. 1 and 2 in short depends upon the answer to the question whether the various activities being carried on by the appellant-assessee constitute one single integrated activity or do they represent distinct businesses. The question of this nature, it is evident, is essentially a question of fact. The statement of the case drawn up by the Tribunal summarises its findings in the following manner : "(a) the various estates and the coffee curing works exist a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of the tests applied by the Tribunal are erroneous, which has vitiated its finding. In particular, learned counsel submitted that the circumstance that closure of one unit would not affect the activities of the other units is not at all a relevant consideration. Similarly, the fact that the several units were acquired at different points of time is said to be equally irrelevant. He strongly relied upon certain decisions including the decision of this court in CIT v. Maharashtra Sugar Mills Ltd. [1971] 82 ITR 452 in support of his contention. So far as Maharashtra Sugar Mills [1971] 82 ITR 452 (SC), is concerned the factual findings therein are entirely distinct and different. In that case it was found by the Tribunal "that the cultivati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d one way and some others the other way. An overall view has to be taken and a conclusion arrived at. Even if it is found that one or two circumstances among the several circumstances relied upon are not relevant, the finding of fact recorded by the Tribunal cannot be interfered with if there are other relevant circumstances which sustain the finding, as held by this court in Shree Meenakshi Mills Ltd. v. CIT [1957] 31 ITR 28 (SC). In the present case, there are a number of other factors -- apart from what are pointed out as irrelevant (assuming for the sake of argument that they are irrelevant) -- to support the finding of the Tribunal. Mr. Ramachandran also. relied upon the decision in CIT v. Indian Bank Ltd. [1965] 56 ITR 77 (SC). The ..... X X X X Extracts X X X X X X X X Extracts X X X X
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