TMI Blog1991 (10) TMI 67X X X X Extracts X X X X X X X X Extracts X X X X ..... ufacture and sale. For this purpose the assessee purchased land constructed a factory building thereon. Due to unavoidable circumstances, the assessee could not purchase machineries in order to commence business of manufacture. Thus, the business of manufacture never commenced. The assessee let out the factory building to Food Corporation of India for being used as godown for storing foodgrains by said Corporation. Before doing so the assessee had amended its memorandum of association by inserting a clause which inter alia empowered the assessee to carry on activity to run, conduct and operate a warehouse for storage of food products. The lease deed was dated 15-2-1971, a copy of which was filed before the ITO. In the lease deed, the factor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stion cannot be assessed as income by exploitation of commercial asset and as such cannot be assessed as business income. Even the ITO has not made attempt to assess the same as business income. On the facts of the present case income by way of rent by virtue of assessee being owner of the building and as such income would be assessable as income from house property with the result that it could not be assessed as income from other sources. It is well established that whether particular letting would give rise to business income has to be decided in the circumstances of each case and each case has to be decided in the setting and background of its own facts. There is no such thing as a naturally born commercial asset because an asset become ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... epartmental representative relied on decision in CIT v. Cawnpore Club Ltd. [1984] 146 ITR 181 (All.) which was followed in Cawnpore Club Ltd. v. CIT [1990] 183 ITR 620 (All.)(App.). In that case the assessee club had not derived income from the mere incidence of ownership of house property; the income in that case was composed of hiring charges of the rooms together with those of furniture and charges for various other services provided by the assessee to its members occupying the rooms. It was because of those facts that it was held that income was assessable as income from other sources. In CIT v. Ajmera Industries (P.) Ltd. [1976] 103 ITR 245 (Cal.) on which also the learned departmental representative relied, the assessee had constructe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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