1998 (11) TMI 37

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....be assessed only under the head "Income from business" and not under the heads "Income from house property" and "Income from other sources"?" The assessment years are 1980-81 and 1982-83. The assessee is charitable institution. It has put up a building, for being made available to them as also to outsiders for purposes of marriage and other functions. It also supplies chairs, mikes, etc., in the building and collects service charges from the parties to whom those facilities are made available. The assessee claimed that such income was income derived from business. The Income-tax Officer held that it was assessable as income from house property. The Tribunal upheld the claim of the assessee holding that it was income from business carr....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ct that in all case where a person carries on a business of letting out flats and hiring furniture, the income derived therefrom could be assessed only under the heads "Property" and "Other sources". The Supreme Court in the case of CIT v. National Storage Private Ltd. [1967] 66 ITR 596 has cited with approval the decision of the House of Lords in the case of Governors of the Rotunda Hospital v. Coman [1920] 7 TC 517; [1921] 1 AC 1, wherein the hospital derived a substantial income from letting out the rooms in another wing of the hospital for public entertainments, concerts, etc., for varying periods and applied the income to the general maintenance of the hospital. The said rooms were let upon terms which included the provision of seat....