1988 (9) TMI 15

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....ons are referred to this court under section 256(1) of the Income-tax Act, 1961. The questions read as under : "(1) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the income derived from lease rent of the building with plant, machinery, furniture and fixtures relating to the Anjali Cinema at Shillong is assessable as income from business a....

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....ing and allowed the appeal. Thereupon, at the instance of the Revenue, the above two questions are referred to this court. The assessee was carrying on business in exhibiting motion pictures. The firm runs theatres "Kelvin" at. Guwahati, and "Biju" at Shillong. Regarding "Anjali", the assessee invested Rs. 9,26,296 for construction of a building at Shillong which is involved in the present refe....

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.... one calendar month's notice. The assessee let out Anjali Cinema thereby to H. O. Unger as he possessed a licence for running a cinema. The moment the firm got the licence, it was agreed that the firm is to terminate the lease and run this business. The Tribunal held that the rental income from the Anjali Cinema would be business income because the assessee constructed the building, equipped it....

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....n New Savan Sugar and Gur Refining Co. Ltd. v. CIT [1969] 74 ITR 7 (SC) where the intention of the assessee was to part with the entire machinery of the factory for the obvious purpose of earning rental income and not to treat the factory and the machinery as a commercial asset during the subsistence of the lease. These two cases show the tests. We see that the intention of the assessee was not....