1975 (9) TMI 58

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....d constructing sheds and godowns for the purpose of storage of grain and fertilisers etc. and to let them out to Government agencies and others who ever might require them. According to the ITO the income from letting godowns is assessable under the head the head "property". The firm did not have any business during the year 1969-70 relevant to the asst. yr. 1970-71. Hence the ITO sought permission from the IAC for cancellation of the registration of the firm and after receipt of approval from the IAC, the ITO issued notice to the assessee asking to show cause as to why registration be not cancelled. The ITO further observed that s. 2(b) of the Indian Partnership Act 1932 defines business as every trade or occupation and profession. Though ....

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....d without any business. But the ITO, not convinced with the plea of the assessee, cancelled the registration granted to the firm as according to him the main ingredient for operation of the partnership is the existence of business and the same was absent and as such the firm could not be said to have born. 2. In appeal the AAC observed that the contention of the counsel for the assessee are well founded and are fully supported by the assessment order of the ITO under s. 143(3) and the appellate order of the AAC Range, I Meerut, wherein it has been categorically held that the assessee firm was engaged in the business of hiring of lands, construction of sheds and godowns thereupon for being let out on rent and that its rental income had bee....