https://www.taxtmi.com/caselaws?id=185352 Rent from factory buildings and godowns is assessable as income from property, not business income, where the assessee has wholly discontinued the underlying business and the property no longer forms part of an ongoing commercial undertaking. Although rent from a commercial asset may sometimes retain business character if the asset remains part of the business apparatus and is only temporarily let out, that principle does not apply when business activity has ceased entirely and the property is being exploited independently of any continuing trade. On these facts, the rental receipts fell under the property head and the Revenue's treatment was upheld. en-us Wed, 28 Oct 1964 00:00:00 +0530 Wed, 10 Aug 2016 12:30:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=185352 Rent from factory buildings and godowns is assessable as income from property, not business income, where the assessee has wholly discontinued the underlying business and the property no longer forms part of an ongoing commercial undertaking. Although rent from a commercial asset may sometimes retain business character if the asset remains part of the business apparatus and is only temporarily let out, that principle does not apply when business activity has ceased entirely and the property is being exploited independently of any continuing trade. On these facts, the rental receipts fell under the property head and the Revenue's treatment was upheld. Case-Laws Income Tax Wed, 28 Oct 1964 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=185352