Rental income from owned godowns is taxable as property income, not business profits, where no continuing business is carried on.

Rental income from godowns owned by the assessee after cessation of its earlier businesses was held assessable under the specific head of income from property, not as business profits. The Court applied the principle that receipts falling squarely within a specific charging head cannot be shifted to the business head merely because they bear some relation to commerce. Income from tenants of owned buildings is specifically covered by the property-income provision, while business income applies only to profits from a business actually carried on by the assessee; the answer was against the assessee.

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Issues: Whether rental income derived from letting out vacant godowns belonged under the head "income from property" or under the head "profits and gains of business".

Analysis: The receipt arose from leases of godowns owned by the assessee after the cessation of its earlier oil-mill and soap businesses. The Court distinguished authorities where plant, machinery, vaults, or other commercial assets were let out in circumstances showing a continuing business activity. It applied the principle that if income falls squarely within a specific head of income, it cannot be taken out of that head merely because it may also bear some relation to business. Income from tenants of owned buildings is specifically dealt with by section 9, while section 10 governs profits and gains of business carried on by the assessee.

Conclusion: The rental income was assessable under section 9 of the Indian Income-tax Act, 1922, and not under section 10. The answer was against the assessee.

Ratio Decidendi: Where rental receipts arise from ownership and letting of buildings, and the receipt is specifically covered by the head "income from property", it must be assessed under that specific head rather than under the head of business income.

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