https://www.taxtmi.com/caselaws?id=193271 Temporary leasing of a cinema theatre and its equipment, when those assets remained commercial assets used in the assessee's business of exhibiting motion pictures, was treated as a mode of carrying on business and not as abandonment of the business. The length of the lease, including an option to renew, was not decisive; the controlling question was whether the asset had merely been exploited as a business asset or had been converted into an ordinary investment yielding rent. On the stated facts, there was no sufficient basis to treat the asset as so converted, so the lease income was assessable as business income under section 10 of the Income-tax Act, 1922, not as income from other sources under section 12. en-us Wed, 11 Oct 1961 00:00:00 +0530 Fri, 21 Jul 2017 14:28:39 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=193271 Temporary leasing of a cinema theatre and its equipment, when those assets remained commercial assets used in the assessee's business of exhibiting motion pictures, was treated as a mode of carrying on business and not as abandonment of the business. The length of the lease, including an option to renew, was not decisive; the controlling question was whether the asset had merely been exploited as a business asset or had been converted into an ordinary investment yielding rent. On the stated facts, there was no sufficient basis to treat the asset as so converted, so the lease income was assessable as business income under section 10 of the Income-tax Act, 1922, not as income from other sources under section 12. Case-Laws Income Tax Wed, 11 Oct 1961 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=193271