1982 (5) TMI 35

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.... K. N. SETH J.-At the instance of the revenue the following question has been referred for the opinion of this court: " Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was right In holding that income from letting out of plant, machinery, building, etc., constituted an element of business activity and was, therefore, to be taxed under the head 'Bu....

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....ber, 1964, Sri Rajindra Nath, the moving spirit behind the company, died and his wife, Smt. Vimla Devi, was made the managing director of the company. The company had in the meantime engaged the services of a miller and also secured electric power connection for the flour mill. It had also arranged with the Regional Director of Food for the supply of imported wheat. The company had also made arran....

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....ment rebate on the machinery. The ITO treated the income by way of lease under the head " Other sources ". The AAC, following the decision of the Income-tax Appellate Tribunal relating to the assessment year 1966-67, held that such income constituted an element of business activity and, therefore, need be taxed under the head Business " instead of " Other sources ". The Tribunal also took the same....