TMI Blog1992 (8) TMI 26X X X X Extracts X X X X X X X X Extracts X X X X ..... ok, and, therefore, the questions referred to us for our reference are as under : For the assessment years 1969-70 and 1970-71: "1. Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was justified in law in holding that the income derived by the assessee from letting out part of its factory building to Messrs. Jamnagar Foundry Works at an annual rent of Rs. 12,000 was assessable under the head 'Income from house property' and not as 'Income from other sources' ?" For the assessment years 1971-72 and 1972-73 : "2. Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was justified in law in holding that the income derived by the assessee from letting o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relate to the question as to under which head the income derived by the assessee from letting out part of its factory building to Messrs. Jamnagar Foundry Works at an annual rent of Rs. 12,000 for the relevant assessment years, namely, 1969-70 and 1970-71, would fall, i.e., as to whether it would fall under the head "Income from house property" or under the head "Income from other sources". The Tribunal has held that such income of rent derived by the assessee would be assessable under the head "Income from house property" and not under the head "Income from other sources" following its own decision, dated August 31, 1976, in Income-tax Applications Nos. 1069 and 1070 and 1308 to 1311/(Ahd) of 1975-76 in the case of New India Industries Li ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nses for the assessment year 1972-73. The deduction of the said expenses was not allowed by the Income-tax Officer. The Appellate Assistant Commissioner confirmed the order passed by the Income-tax Officer and added the aforesaid expenditure under section 37(2B) of the Act by placing reliance upon the decision of the Allahabad High Court in the case of Brij Raman Dass and Sons v. CIT [1976] 104 ITR 541. In the appeal preferred to the Tribunal, by following the decision of the Division Bench of this court in the case of CIT v. Gautamkumar Rajendrakumar and Patel Bros. and Co. Ltd. [1977] 106 ITR 424, the Tribunal held that the provisions made by the assessee for tea and messing could not be said to be lavish, extravagant or unreasonable an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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