TaxTMI 
TaxTMI 
1967 (3) TMI 10
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....under Order XX, rule 12, of the Code of Civil Procedure, the liability of the appellants to pay mesne profits at Rs. 2,57,963. In appeal the claim of the landlord for mesne profits was settled by consent and the amount was reduced to Rs. 1,90,220. In proceedings for assessment of income for the assessment year 1955-56 the appellants claimed Rs. 92,240 out of the amount of mesne profits as a permissible allowance in the computation of their business income. The Income-tax Officer disallowed the claim holding that the business of Prakash Talkies was not carried on by the appellants during the previous year relevant to the year of assessment 1955-56. The Appellate Assistant Commissioner confirmed the order of the Income-tax Officer holding t....
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....ee under a decree for possession of the premises used for the purpose of the assessee's business is an item which is properly chargeable to profits under section 10(1) of the Income-fax Act in computing his taxable income. It was also common ground that the burden of proving that the amount claimed was an item properly chargeable in the previous year (calendar year 1954) relevant to the assessment year 1955-56 lay upon the appellants. The Commissioner contended that the business of " Prakash Talkies " was independent of the other businesses carried on by the appellants, and since the former business was closed in 1952, any outgoing in respect of that business was not a permissible allowance against the income of the other businesses carried....
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....businesses is closed before the previous year, he cannot claim allowance under section 10 of the Act of an outgoing attributable to the business which is closed against the income of his other businesses in that year. The only question which therefore fell to be determined is whether the business in respect of which the allowance is claimed was carried on in the year of account 1954. The appellants were carrying on business of exhibiting cinematograph films in Ahmedabad and Bombay. The appellants, contended that they were carrying on only one business of exhibiting cinematograph films, and in the course of that business they conducted three theatres in Ahmedabad and one in Bombay. The business of exhibiting films in the Prakash Talkies wa....
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.... Sugar Mills Ltd.'s case in determining whether different ventures may be said to constitute the same business it has to be seen whether there was any interconnection, any interlacing, any interdependence, any unity embracing the ventures, and whether the different ventures were so interlaced and so dovetailed into each other as to make them into the same business. These principles have to be applied to the facts before a legal inference can be drawn that different business ventures constitute one business. In the determination of the question, findings of fact are involved, because a variety of matters bearing on the unity of the business have to be investigated, such as unity of control and management, conduct of the business through the ....