TaxTMI 
TaxTMI 
2006 (9) TMI 122
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....mstances of the case, the entire expenditure incurred by the appellant-assessee of its business is to be allowed from the taxable receipts and no allocation of expenditure is permissible as held by the hon'ble apex court in CIT v. Indian Bank Ltd. [1965] 56 ITR 77; CIT v. Maharashtra Sugar Mills Ltd. [1971] 82 ITR 452 (SC) and Rajasthan State Warehousing Corporation v. CIT [2000] 242 ITR 450 (SC)? 2. Whether, on the facts and in the circumstances of the case, all income from ancillary activities except supervision charges and miscellaneous receipts are exempt under section 10(29) of the Income-tax Act, 1961? 3. Whether, on the facts and in the circumstances of the case and on a proper and true interpretation of section 254 of the Income-t....
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....e the whole of the expenses including that of the warehousing expenses are eligible for deduction from the taxable receipts, the business of the assessee being composite and single with common finance and management. The Assessing Officer passed the assessment orders holding, inter alia, that the income from the warehousing business is exempt under section 10(29) but the income from ancillary activities is taxable in view of the decision of the Tribunal in I.T.A. Nos. 192/Gauhati/1985 to 1986/Gauhati/1985 and in I.T.A. No 18/Gauhati of 1989. The Assessing Officer further held that the income received by way of rent from the quarters allotted to the employees is business income and not under the head "Income from house property". It was fur....
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.... Income-tax (Appeals) after having noticed on the facts that there was no real income from interest. On appeal by the Revenue, the learned Tribunal with regard to the income from ancillary activities and exemption of entire expenditure in the course of his business held that the matter has to be looked into by the Assessing Officer in the light of the direction given in I.T.A. (A) Nos. 213, 214, 215 and 216 of 1995. In respect of rent, relying upon its earlier judgments in I.T.A. Nos. 182 to 186/Gauhati of 1995 it held that the rental income should be treated as business income and computation be made accordingly. In respect of interest, the view of the Commissioner of Income-tax (Appeals) was upheld. Thus, the matter stood remanded to the....