1985 (5) TMI 46

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.... of income from business was rejected by the ITO and it was held to be income from " Other sources ". His view was affirmed by the AAC as well both the authorities relying upon New Savan Sugar and Gur Refining Co. Ltd. v. CIT [1969] 74 ITR 7 (SC). The Appellate Tribunal, however, took a different view of the matter and accepted the claim of the assessee. The Tribunal recorded its conclusions in one Short paragraph which may be reproduced here : " 6. This issue came before the Tribunal in I.T.A. Nos. 529 and 530 (Pat) of 1967-68 in the assessee's own case for the assessment years 1964-65 and 1965-66, where the Tribunal held that the income of the assessee that was received from the managing contractors was assessable under the head 'Busin....

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....e lease of the kind with which we are concerned must be treated as income from " Business ". The Tribunal thus gave its judgment following the decision of the Punjab and Haryana High Court. The short answer is that the decision of the Punjab and Haryana High Court has been disapproved by this court in Khas Benedih Colliery v. CIT [1974] BBCJ 440. The Tribunal, therefore, erred in the view it took relying upon the case of Nauharchand Chananram [1971] 82 ITR 189 (P & H). The ground that in earlier assessment years, the Tribunal had held such an income as income from business is untenable for the reason that the principle of res judicata has no application to tax cases. Both the grounds put forth by the Tribunal are, therefore, unsound. The....