TMI Blog2006 (9) TMI 122X X X X Extracts X X X X X X X X Extracts X X X X ..... ess of the assessee is one and indivisible and yielding both taxable and non-taxable income, the entire amount spent would be deductible - Since the Assessing Officer is seized of the matter, it would not be appropriate to refer the matter back to the learned Tribunal for reappreciation of facts and finalisation of assessment – AO shall make reassessment in terms of the observation made above - - - - - Dated:- 5-9-2006 - Judge(s) : D. BISWAS., T. N. K. SINGH. JUDGMENT The judgment of the court was delivered by D. Biswas J.-All these appeals under section 260A of the Income-tax Act, 1961 are directed against a common order dated May 31, 2002, passed by the learned Tribunal, Guwahati Bench, in I.T.A. Nos. 282 to 287 of 1998. The app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stantial importance of the issue involved with reference to the exemption granted under section 10(29) of the Income-tax Act, 1961?" We have heard Mr. V.K. Bhatra, learned counsel for the appellants, and also Mr. U. Bhuyan, learned counsel for the Revenue. The appellant-Corporation is a body corporate constituted under the Warehousing Corporation Act, 1962, and is an authority within the meaning of section 10(29) of the Income-tax Act, 1961. The appellant-authority derives income from various sources such as storage charges, rent received from various sources, weighment charges, handling charges, supervision charges, fumigation charges and other miscellaneous receipts and interests. All the receipts other than interest and rent are rela ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ame as section 57(iii) is pari materia with section 37(1). With regard to receipt of rent from the quarters allotted to the employees, the Commissioner of Income-tax (Appeals) relied upon a decision of the learned Tribunal in Appeals Nos. I.T.A. Nos. 182 to 186/Gauhati of 1985 wherein it was directed that receipts on account of rent should be treated as business income and computed accordingly. Accordingly, the direction was issued to treat the receipts on account of rent as business income. With regard to interest, the Commissioner of Income-tax (Appeals) found that there was no income from interest from short-term deposits because interest received and interest paid on loans should be treated as contra entries, and, only in the case of su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cer will have to examine whether the business of the assessee is one and indivisible and on the findings of such examination to decide whether the entire expenditure incurred thereon is to be allowed or not (CIT v. Maharashtra Sugar Mills Ltd. [1971] 82 ITR 452 (SC)). If it is found that the business of the assessee is one and indivisible and yielding both taxable and non-taxable income, the entire amount spent would be deductible in Rajasthan State Warehousing Corporation v. CIT [2000] 242 ITR 450 (SC). Since the Assessing Officer is seized of the matter, it would not be appropriate to refer the matter back to the learned Tribunal for reappreciation of facts and finalisation of assessment, as argued by Shri Bhatra, learned counsel. The Ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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