TMI Blog2001 (9) TMI 33X X X X Extracts X X X X X X X X Extracts X X X X ..... he Tribunal. The correctness of that decision has been called into question by the Revenue in this reference. The assessment year is 1985-86. The business of the assessee is that of being maritime agent. No part of the premises, from which it received rent in the assessment year, was used for its business purpose. This court, in a case concerning the same assessee in CIT v. New India Maritime Ag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... omputed for the purpose of taxation in the manner provided by the appropriate section. If the income from a source falls within a specific head set out in section 6, the fact that it may indirectly be covered by another head will not make the income taxable under the later head." In that case which arose under the 1922 Act, it was held by the court that the income derived by a company formed wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee as it had difficulty in obtaining silk yam during the chargeable accounting period, viz., January 1, 1943 to December 31, 1943. The question which the court was required to consider therein was as to whether that income of the assessee was chargeable to excess profits tax as profits of business or whether it was income from other sources and was, therefore, not chargeable to excess profits ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s said there in the context of the excess profits tax cannot be applied to the case of income derived from house property by an assessee, which also carries on business. The decision in Shri Lakshmi Silk Mills Ltd.'s case [1951] 20 ITR 451 (SC) was not understood by the Supreme Court as being applicable to income from house property under the Income-tax Act as is evident from the decision render ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding that the rental income received by the assessee from properties owned by it and let out to others was not income from house property and that the same was required to be treated as business income. The question' referred to us is, therefore, answered in favour of the Revenue and against the assessee. The Revenue shall be entitled to cost in the sum of Rs. 1,500. - - TaxTMI - TMITax - I ..... X X X X Extracts X X X X X X X X Extracts X X X X
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