1997 (5) TMI 21

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....es ?" 2. The assessee is a co-operative society registered under the Co-operative Societies Act. The assessment year is 1982-83 and the corresponding accounting period was from 1st July, 1980, to 30th June, 1981. The assessee was mainly engaged in the business of earning commission on the sale of potatoes of its members. Before the ITO, a claim was made that the income earned from the commission business amounting to Rs. 3,22,697 was entirely exempt. The officer agreed with the assessee, but observed that the expenses incurred for earning the income had to be set off in order to arrive at the net income from the commission business, which alone according to him was exempt from the tax. The ITO took note of the fact that the assessee was ....

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....(e) Capital gains ; and (f) Income from other sources. By bringing the income of the assessee under the different heads, it was found by the ITO as well as the appellate authority that the incomes were mutually exclusive and it is not a case of one activity depending on another for the purpose of being continued. 4. Learned counsel for the assessee places reliance on the judgment of the Supreme Court in CIT vs. Maharashtra Sugar Mills Ltd. 1973 CTR (SC) 489 : (1971) 82 ITR 452 (SC) : TC 16R.644. The assessee in that case was carrying on business of manufacture of sugar from sugarcane. It owns extensive lands in which sugarcane was grown. The sugarcane grown in those lands was used by the assessee for manufacture of sugar in its fac....

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....The general observations made by the Court will not help the assessee in the present case in view of the finding of fact arrived at by the authorities concerned. Our attention is drawn to the judgment of the Supreme Court in Waterfall Estates Ltd. vs. CIT (1996) 219 ITR 563 (SC). While pointing out that no single test can be devised as universal and conclusive in order to determine whether various activities constitute the same or separate business, the Court held that the question has to be decided on a consideration of all the relevant facts and circumstances. The Court said that some facts may tend one way and some others the other way and an overall view has to be taken and a conclusion arrived at. It is also observed that even if it....