1987 (1) TMI 63

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....y this reference under section 256(1) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), the Income-tax Appellate Tribunal, Indore Bench, has referred the following question of law to this court for its opinion : " Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the activity of letting out the factory building did not const....

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....d the Income-tax Officer to grant registration to the assessee-firm. Aggrieved by the order passed by the Appellate Assistant Commissioner, the Revenue preferred an appeal before the Tribunal. The Tribunal came to the conclusion that the act of leasing the dal mill by the assessee could not be held to be a business activity and hence the Income-tax Officer was right in refusing registration. The T....

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....me Court held that there is no warrant in law for the proposition that a commercial asset which yields income must be used as an asset by the assessee himself. The Supreme Court held that the assessee is entitled to exploit such asset to his best advantage, which he may do so either by using it himself personally or by letting it out to somebody else. In the instant case, the business of the partn....