2011 (7) TMI 807

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....enched. Thereafter, the assessee has been using the premises for various purposes like giving hall on rent and taking franchise business. During the year under consideration, the assessee had given the premises of franchise business to Kids Kemp. In terms of the contract, the period was three years and the assessee was to get a profit of 25% on sales on all the products subject to the assessee running the business and incurring relevant expenses. On verification of the accounts, it was noticed that the assessee has debited a sum of Rs. 17,82,678/- under the head salary and wages. Accordingly, the details of the same was called for by the Assessing Officer and it was found that the assessee has paid a sum of Rs. 14,50,660/- as compensation u....

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.... compensation claimed by the assesses for payment towards workmen in the closed business of hotel can be adjusted towards the franchise business of kids camp being run by the assessee?" 4. The identical question of law came up for consideration in the case of B.R. Ltd. v. V.P. Gupta, CIT [1978] 113 ITR 647, wherein the Hon'ble Supreme Court held that the decisive test is unity of control and not the nature of the two lines of business. It was further held at Paras 13 and 14 as follows : "13. These circumstances are not by themselves sufficient to establish that the business of import which the appellant was doing is not the same business as that of export. The decisive test, as held by this Court in Produce Exchange Corporation (supra) is....