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of <h1>Acquiring and converting immovable property to let (repairs, rewiring, lift, seeking tenants) constitutes carrying on business, not preparatory acts</h1> SC dismissed the appeal, holding that acquisition of immovable property and subsequent works to convert and fit it for letting (repairs, rewiring, lift ... Date of commencement of business - immovable properties let out on lease - HELD THAT:- The assessee had purchased a property; it was on the look out for persons to whom it could be let out ; it had been able to get a customer ; and it had carried out repairs, rewiring, installation of lift and other steps in the process of getting the premises converted from residential house into a business and storage accommodation conforming to the requirements of the customer. Even if, as submitted by Dr. Gauri Shankar, the first category of activity referred to by the High Court, viz., the acquisition of a property for being let out can be said to be only a preparatory stage (analogous to the acquisition of buildings, plant and machinery in a manufacturing business), the subsequent activities certainly constitute activities in the course of the carrying on of the assessee's business. It would not be correct, as rightly pointed out by the High Court, to treat the assessee as having commenced its business only when the licensee or lessee occupied the premises or started paying rent. In these circumstances, we are of the opinion that the High Court was right in interfering with the finding of the Appellate Tribunal which was based on misdirection in law. We, therefore, find no merit in this appeal which is dismissed. The Supreme Court dismissed the appeal by the Department regarding the date of commencement of the assessee's business. The High Court's decision was upheld as the Tribunal had a misapprehension regarding the nature of the assessee's business activities. The High Court correctly pointed out that the various activities carried out by the assessee constituted business activities, even before the premises were occupied or rent was paid. The appeal was dismissed with no order regarding costs.
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