Rental receipts from shops and stalls taxed as property income, not business profits, despite market-development activity.

Income from shops and stalls let out by a company formed to develop markets is taxable under the specific head of income from property, because classification under the Income-tax Act depends on the source of the receipt and the heads of income are mutually exclusive. Incidental services or the temporary nature of occupation do not change the essential character of rental receipts. Where income falls within the property head, it cannot be assessed as business profits merely because it has a connection with the company's market-development activity.

---

---

Issues: Whether the income derived from shops and stalls let out by a company formed to develop and promote markets is assessable as income from property or as business profits.

Analysis: The classification of income under the Income-tax Act depends on the source from which it arises, and the heads of income are mutually exclusive. Income from letting property falls under the specific head of income from property even if the owner is a company formed to develop markets or to manage and maintain the premises. The provision of incidental services or the temporary nature of occupancy does not alter the essential character of the receipts. Where income falls within a specific head, it cannot be taxed under a different head merely because it may also bear some relation to business activity.

Conclusion: The receipts from shops and stalls were assessable under the head income from property and not as business profits.

---