TMI Blog1998 (11) TMI 46X X X X Extracts X X X X X X X X Extracts X X X X ..... ct, 1961 (for short, "the Act"), the provisions of the section, in so far as it is relevant for the purpose of the case, are reproduced as under : "56, Income from other sources.---(1) Income of every kind which is not to be excluded from the total income under this Act shall be chargeable to income-tax under the head 'Income from other sources', if it is not chargeable to income-tax under any of the heads specified in section 14, items A to E. (2) In particular, and without prejudice to the generality of the provisions of sub-section (1), the following income shall be chargeable to income-tax under the head 'Income from other sources', namely :---... (ii) income from machinery, plant or furniture belonging to the assessee and let on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lodging house. According to the Tribunal, the sanitary and other fittings like pipes were meant to cater to the needs of the lodgers, and they formed part of the building, and the agreement relating to the fittings covered not only items like cots, chairs, tables, dunlop mattresses, pillows, etc., but also motors and pump sets and sanitary fittings. The Tribunal, after going through the terms of two agreements of tenancy, Came to the conclusion that the two agreements might have been entered into for the purpose of reducing the levy of property tax by the Corporation of Chennai. The Tribunal, considering the copy of the partnership deed which provided for a composite payment of rent of Rs. 10,000 per month to the co-owners for the lease, c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rate agreement and, therefore, it cannot be said that the letting out of the building is itself referable to the letting out of the machinery, plant and furniture. According to learned counsel for the Revenue, the proper head of income in so far as it relates to the income derived from letting out of the property would be "income from house property". Learned counsel for the assessee, on the other hand, submitted that the letting out of the building and furniture with fittings is inseparable and, therefore, the income was properly held to be chargeable under the head "Income from other sources". We have carefully considered the submissions of learned counsel for the parties. The Tribunal has recorded a finding that the letting out of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n being the apprehension of the assessee that he may have to shoulder higher burden of property tax to be imposed on the building by the Corporation of Chennai if the transaction was reduced in a single document. Though the assessee had entered into two separate agreements, one for building and another for furniture and other amenities, we are of the opinion that the letting of furniture and building was a single indivisible transaction. We are of the opinion that so long as that finding of the Tribunal remains, the conclusion of the Appellate Tribunal that the income should be assessed under the head "Income from other sources" is sustainable on the facts of the case. Learned counsel for the Revenue brought to our attention the decision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wo separate leases in respect of the furniture and building, both the species of properties were enjoyed on payment of one lump-sum which also gives an indication that the letting of the building and the letting of the furniture were one letting. The assessee would not have let out the building alone without the lease of furniture or other amenities and one does not exist without the other. The Tribunal, therefore, in our opinion, has come to the correct conclusion in holding that the tests laid down by the Supreme Court are satisfied in the instant case and that the income from the lease of building should be made under section 56 of the Act. In our view, it can be said that the proper head of income would be "income from other sources", a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... referred was a limited one, whether the income from the building and the income attributable to the amenities provided by the assessee should be assessed under the head "Income from other sources". According to us, it is clear from the facts of the cases that the letting out of the premises with fittings was a single and indivisible transaction and, therefore. the entire rent received by the assessee from such a composite letting was liable to be and it was rightly held to be assessable under the head "Income from other sources". The order of the Appellate Tribunal taking this view, in our view, is quite justified and sustainable on the facts of the case. Accordingly, we answer the common question of law referred in all the tax cases in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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