1982 (2) TMI 324

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.... incurred by the assessee for the upkeep and maintenance of its plant and machinery was a revenue expenditure allowable under the IT Act ? The question of law referred in M.C.C. No. 334 of 1978 is as follows : Whether, in the facts and in the circumstances of the case, the Tribunal was right in holding that the rental income accruing to the assessee from its godowns was not its business income and the losses incurred in the earlier years could not be carried forward and set off in asst. yr. 1966-67 ? 3. M.C.C. No. 39 of 1978 relates to the asst. yr. 1974-75 and M.C.C. No. 334 to the asst. yr. 1966-67. The assessee is a private limited company. The assessee carried on business of oil milling. From the statement of the case and....

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....roperty which at one time was a commercial asset would cease to be so and the income from letting out such asset would not be business income, but where the business activity is temporarily suspended and there is no intention to go out of business, the business asset will continue to be business asset and income from letting out of such an asset will be treated as business income (see Kanga and Palkhivala, 7th Edn., Vol. I, at page 345). The Tribunal in deciding the appeals out of which the two references arise has not adverted to these principles. There is nothing in the orders of the Tribunal or in the statements of the cases from which it may be possible for us to infer whether the discontinuance of business was temporary suspension of t....