1981 (2) TMI 43

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....of the air-conditioning plant should be assessed under the head 'Business income' ? (2) Whether, on the facts and in the circumstances of the case, the assessee is entitled to claim development rebate in respect of the air-conditioning plant under section 33 of the Income-tax Act, 1961 ? " The facts giving rise to this reference as set out in the statement of the case are as follows : The assessee, an individual, derives income from house property, insurance commission and hire charges in respect of air-conditioning equipment. The assessment year involved is 1974-75 for which the accounting period is the financial year ending March 31, 1974. During the accounting period the assessee purchased an air-conditioning equipment and leased i....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....held that the income received by the assessee from the hiring of the air-conditioning plant is liable to be assessed under the head " Business income ", it is not disputed by the revenue that the assessee in that case would be entitled to claim development rebate in respect of the said air-conditioning plant under s. 33 of the Act. Now, it is well settled that the several heads of income mentioned in s. 14 of the Act are mutually exclusive, each head being specific to cover the income arising from a particular source and if the income under consideration is taxable under the head " Profits and gains of business or profession ", it cannot be taxed as income from other sources. The Tribunal has refused to treat the income from the hiring o....