1983 (7) TMI 30

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.... received by the assessee from the various godowns and factories was chargeable under the head 'Income from property' and not as 'Income from business' as claimed by the assessee ? (2) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in upholding the disallowance of the claim of losses in the nine branches where no business was carried on by the assessee during the assessment year 1975-76 ? " The material facts giving rise to this reference as set out in the statement of the case are as follows : The assessee is an HUF and carries on various kinds of business at its head office Mandsaur and a number of branches at various places. During the assessment year 1975-76, the assessee claimed that the re....

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....ble to be assessed under the head " Income from business and profession " and not under the head " Income from property ". The contention is not well founded. It was not the case of the assessee before the Revenue and it has not been found by the Tribunal that the letting out of the factories and godowns was an act of commercial expediency or that it was incidental to the business of the assessee. No material was placed by the assessee before the Revenue in that regard. In the circumstances, the Tribunal did not commit any error of law in assessing the rental income from the factories and godowns received by the assessee under the head " Income from property ". In view of this it is not necessary to discuss the cases relied upon by the l....