1985 (2) TMI 14

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....e under the head 'Business', and (2) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that the status of the assessee should be firm and not association of persons." The relevant facts of the case can be culled out from the statement of the case. The assessee claims to be a firm and the assessment year involved is 1967-68 corresponding to the accounting period ending December 31, 1966. The assessee, by an agreement, appointed a managing contractor for extraction of coal and from him the assessee received certain commission. The Income-tax Officer came to the conclusion that the assessee, by giving to a managing contractor the complete control over the mines of the colliery, cease....

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....siness activity. It was submitted that the income received by the assessee was assessable under the head "Other sources" and not as income from business. It was further submitted that the assessee had no intention to carry on business and in the absence of that, there could be no partnership. The Tribunal, on the facts and in the circumstances of the case, upheld the order of the Appellate Assistant Commissioner following the decision of the Punjab High Court in Dal Chand and Sons v. CIT [1968] 69 ITR 247 and Nauharchand and Chananram v. CIT [1971] 82 ITR 189 where it was held that the income received by the assessee from letting out its commercial assets was assessable under the head "Business " and not under the head "Other sources" and t....