TMI Blog1998 (8) TMI 36X X X X Extracts X X X X X X X X Extracts X X X X ..... re charges--and therefore was essentially an integrated business, inasmuch as earning income from hiring of the properties owned by the assessee was the common object, and that the assessee had carried on both these businesses within the same compound that it had maintained common accounts, and that the management as also finance was common, have been questioned by the Revenue in this reference. It is contended by counsel for the Revenue that the running of a hospital is not in any way linked with the business of running of a studio and the mere accident of the studio owner using his property for the activity of running a hospital cannot make what are otherwise two distinct businesses into a single integrated business of running a studio. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal in its order show that the assessee, Vijaya Productions (P.) Limited, was a partner in a firm, owning an extensive property, wherein a studio was being run under the name Vauhini Studios, till that partnership was dissolved in the year 1974, when it became the owner of the property. Under the terms of the dissolution, the property was allotted to the assessee. The partnership firm had in the year 1972 constructed a hospital building on a portion of the land, belonging to Vauhini Studios. The accounts of the hospital as also of the studios were regarded as one by the firm. Even after the dissolution of that firm, the assessee was assessed on its income from the studios as also from the hospital by treating the two lines of businesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... two activities was also common. The tests formulated by the Supreme Court therefore were held to be answered and the two activities were held to be a single business for the purpose of assessment. We do not find any error of law in the order or approach of the Tribunal. Counsel for the Revenue, however, contended that the decision of this court in CIT v. Blue Mountain Estates and Industries Ltd. [1985] 151 ITR 616, has laid down the principle that notwithstanding the unity of control, if the activities are distinct and are capable of being carried on notwithstanding the closure of one or the other activity then the business cannot be regarded as a single business. That decision was rendered without taking note of the law laid down by th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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