TMI Blog1998 (11) TMI 37X X X X Extracts X X X X X X X X Extracts X X X X ..... heads "Income from house property" and "Income from other sources"?" The assessment years are 1980-81 and 1982-83. The assessee is charitable institution. It has put up a building, for being made available to them as also to outsiders for purposes of marriage and other functions. It also supplies chairs, mikes, etc., in the building and collects service charges from the parties to whom those facilities are made available. The assessee claimed that such income was income derived from business. The Income-tax Officer held that it was assessable as income from house property. The Tribunal upheld the claim of the assessee holding that it was income from business carried on by the assessee. Counsel for the Revenue contended that if the ow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and hiring furniture, the income derived therefrom could be assessed only under the heads "Property" and "Other sources". The Supreme Court in the case of CIT v. National Storage Private Ltd. [1967] 66 ITR 596 has cited with approval the decision of the House of Lords in the case of Governors of the Rotunda Hospital v. Coman [1920] 7 TC 517; [1921] 1 AC 1, wherein the hospital derived a substantial income from letting out the rooms in another wing of the hospital for public entertainments, concerts, etc., for varying periods and applied the income to the general maintenance of the hospital. The said rooms were let upon terms which included the provision of seating, heating and attendance, but an additional charge was made for the gas and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owner to earn a rental income. Here the expression "letting out" is used only for a limited purpose. The building remains under the control of the owner. What is granted by the owner is only a licence for a prescribed fee for a specified period. This activity of the assessee can be described as a business carried on by the assessee with the intention of earning income from the building, the business being that of making available the building to others for a charge for a limited duration. The overall control of the building at all times being retained by the assessee. The Tribunal is therefore right in holding that the income derived by the assessee from making the building owned by it available to others for a limited period for variou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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