1991 (10) TMI 67

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....pose the assessee purchased land constructed a factory building thereon. Due to unavoidable circumstances, the assessee could not purchase machineries in order to commence business of manufacture. Thus, the business of manufacture never commenced. The assessee let out the factory building to Food Corporation of India for being used as godown for storing foodgrains by said Corporation. Before doing so the assessee had amended its memorandum of association by inserting a clause which inter alia empowered the assessee to carry on activity to run, conduct and operate a warehouse for storage of food products. The lease deed was dated 15-2-1971, a copy of which was filed before the ITO. In the lease deed, the factory building was described as god....

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....ncome by exploitation of commercial asset and as such cannot be assessed as business income. Even the ITO has not made attempt to assess the same as business income. On the facts of the present case income by way of rent by virtue of assessee being owner of the building and as such income would be assessable as income from house property with the result that it could not be assessed as income from other sources. It is well established that whether particular letting would give rise to business income has to be decided in the circumstances of each case and each case has to be decided in the setting and background of its own facts. There is no such thing as a naturally born commercial asset because an asset becomes commercial asset in view of....