TMI Blog1982 (2) TMI 56X X X X Extracts X X X X X X X X Extracts X X X X ..... oning plant of the capacity of 50 to 60 tons at considerable cost. At that time the assessee also constructed an auditorium in the basement of the said building at a considerable cost and provided services therein like the use of a film projector, a tape-recorder, a microphone, a canteen and so on. The assessee employed a staff of about 25 persons, including technicians for the maintenance of the air-conditioning plant. There was also a staff to look after the maintenance of the auditorium and the maintenance of the machinery therein and servicing the said machinery. Various parts of the said building let out to different tenants were air-conditioned and the assessee charged these tenants separately for supplying cool air, namely, for air-c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was not the ownership of a house property but a business activity, which was carried on, namely, the provision of the services of air-conditioning and of a fully equipped auditorium. The letting was not of a bare property but of one of a complex nature and consisted of providing specialised services and facilities. It held that the receipts received by the assessee from the air-conditioning plant and the auditorium were from an activity carried on by the assessee which was in the nature of a business activity. The Tribunal emphasised that neither the auditorium nor the air-conditioning plant was let out as such. They were run by the assessee as and by way of providing services. On the basis of these conclusions, the Tribunal allowed the app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come, be classified under the said heads. One of these heads is " Profits and gains of business or profession ". The last head is " Income from other sources ". The aforesaid head, namely, " Income from other sources is a residuary head and it is the well settled position in law that no income can be held to fall under that head, unless it is shown that it does not fall under any of the earlier heads and yet is liable to a charge of income-tax. The position which emerges is that the aforesaid income of the assessee from the use of the air-conditioning plant and the supply of the aforesaid services cannot be held to be income from other sources, unless it is shown that it could not be regarded as income derived from business. The submissio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the vaults to be used by the film distributors on payment of a monthly charge. A vault holder was given a key to the vault but the key to the entrance which permitted access to the vaults remained in the exclusive possession of the assessee-company. The assessee also rendered certain services to the vault holders such as fire service for which it paid an annual amount to the municipality, railway booking offices free of charge for the convenience of the vault holders, canteen and a telephone. It maintained a regular staff for running the aforesaid services and the entire staff of the Indian Motion Pictures Distributors' Association was also paid Rs. 800 for the part-time services rendered by it to the assessee. It was held by a Division B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eme Court has cited with approval the decision in Governors of the Rotunda Hospital, Dublin v. Coman [1920] 7 TC 517; [1921] 1 A.C. 1 (HL), where the Governors of a maternity hospital established for charitable purposes were the owners of a building, which comprised rooms adapted for public entertainments and which was connected with the hospital buildings proper by an internal passage. The hospital derived a substantial income from letting the rooms for public entertainments, concerts, etc., for varying periods and applied the income to the general maintenance of the hospital. The rooms were let upon terms which included the provision of seating, heating and attendance, but an additional charge was made for the gas and electricity consumed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nces, it appears to us that the Tribunal was, with respect, justified in holding that the carrying on of all these activities amounted to a carrying on of business and the income derived from the same was business income as claimed by the assessee. We may now refer to some other decisions which were cited before us. Mr. Butani, the learned counsel for the Commissioner, strongly relied on the decision of a Division Bench of the Karnataka High Court in D. C. Shah v. CIT [1979] 118 ITR 419 and the decision of a Division Bench of the Calcutta High Court in Indian City Properties Ltd. v. CIT [1978] 111 ITR 19. As far as these decisions are concerned, we are of the view that they are of no relevance in the determination of the questions before ..... X X X X Extracts X X X X X X X X Extracts X X X X
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