1997 (3) TMI 76

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....56(1) of the Income-tax Act, 1961 ("the Act" for short), on an application filed by the Revenue, to the Income-tax Appellate Tribunal, Patna Bench, Patna, has been made to this court for its opinion on the following question of law, which appertains to the assessment year 1979-80: " Whether, on the facts and circumstances of the case, the Tribunal was justified in holding that the income derive....

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....India was its business income. The Income-tax Officer, however, negatived the assessee's claim and held that the rental income received by the assessee from the Food Corporation of India was assessable under the head "Income from house property". Subsequently, on the Inspecting Assistant Commissioner (Assessment)'s direction under section 144B, the Income-tax Officer assessed the rental income in ....

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....able under the head "Business". The Appellate Tribunal on scrutiny of the agreement dated June 2, 1976, entered into by the assessee with the Food Corporation of India found that the assessee was not the owner of the land but was a lessee thereof for a period of 25 years. The Tribunal also found that the assessee constructed the structure on the land according to the specifications of the Food Cor....

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....from business. In Sultan Brothers Private Ltd. v. CIT [1964] 51 ITR 353 the Supreme Court held that whether a "particular letting" is business or not is to be decided in the circumstances of each case. Each case has to be looked at from a businessman's point of view to find out whether the letting was the doing of a business or the exploitation of his property by an owner. In the present cas....