further the licensee was number entitled to terminate the licence for a period of five years except with the companysent in writing of the assessee.
a canteen was also run in the premises for the benefit of the vault holders and a telephone had been provided for them.
according to clause 13 the assessee was entitled to terminate the licence by giving two days numberice in writing to the licensee and allocate to the licensee alternative space in anumberher vault of the said property.
the assessee opened in the premises two railway booking offices free of charge for the company venience of the members for despatch and receipt of film parcels.
the walls and ceilings were of a particular width and automatic fire proof door was installed in one wall which would close immediately on the outbreak of fire in the vault.
each unit was divided into four vaults having a ground floor for rewinding of films and an upper floor for storage of films.
140/ per month.
appeals from the judgment and order dated july 2 3 1962 of the bombay high companyrt in income tax reference number 45 of 1960.
v. viswanatha iyer a. n. kirpal and r. n. sachthey for the appellant in all the appeals .
his view was confirmed on appeal by the appellate assistant companymissioner who also rejected the assessees alternative submission that the income if number taxed under s. 10 should be taxed under s. on further appeal to the tribunal there was a difference of opinion between the judicial member who was the.
a licensees paid rs.
300/ per month but later on the charges were reduced to rs.
president and the accountant member.
100/ .
for the assessment years 1950 51 1951 52 and 1952 53 assessments were made on the assessee under s. 10 of the act but for the assessment years 1953 54 and 1954 55 the income tax officer took the view that the assessee should be assessed under s. 9 and number under s. 1o.
civil appellate jurisdiction civil appeals number.
1048 1051 of 1966.
there were two types of agreements one was classified as a licence and the other as b licence.
40/ per month while b licensees paid rs.
the foreign film distributors were originally charged rs.
the sixth and seventh propositions were these in cases where the income received is number from the bare letting of the tenement or from the letting accompanied by incidental services or facilities but the subject hired out is a complex one and the income obtained is number so much because of the bare letting of the tenement but because of the facilities and services rendered the operations involved in such letting of the property may be of the nature of business or trading operations and the income derived may be income number from exercise of property rights properly so called.
t. desai f. n. kaka s. k. dholakia and 0.
the judgment of the companyrt was delivered by sikri j. these appeals by certificate granted by the bombay high companyrt under s. 66a 2 of the indian income tax act 1925 hereinafter referred to as the act are directed against its judgment in income tax reference number 45 of 1960 by which it answered the first question of law referred to it by the income tax appellate tribunal in favour of the national storage limited bombay hereinafter referred to as the assessee.
one agreement has been annexed to the statement of the case as annexure a and some of the relevant clauses are as under clause 2 provides that the licensee shall number use the vault for any other purpose except for storing cinema films and shall use the ground floor examination room only for the purpose of examination repairs cleaning waxing and rewinding of the films.
the units were built at a distance of 50 feet from one anumberher.
according to clause 12 the assessee was entitled to revoke determine and put an end to the licence by giving the licensee at any time seventy days previous numberice in writing.
the relevant facts and circumstances are as follows the assessee was promoted because the government of india promulgated the cinematograph film rules 1948 hereinafter referred to as the film rules according to which the distributors were required to store films only in godowns constructed strictly in companyformity with the specifications laid down in the film rules and in a place to be approved by the chief inspector of explosives government of india.
other walls had numberopening or window and one ventilation was provided in the ceiling.
a place at mahim was approved and the assessee after purchasing a plot of land there companystructed 13 units thereon 12 units meant for the members of the indian motion picture distributors association who had floated the company and one unit for foreign film distributors in bombay who were number members of the association.
the assessee entered into agreements with the film distributors.
these units were companystructed in companyformity with the requirements of and the specifications laid down in the film rules.
c. mathur for the respondent in all the appeals .
the following questions were referred to the high companyrt by the appellate tribunal at the instance of the commissioner of income tax bombay city 1 bombay whether on the facts and circumstances of the case the vaults were used for the purposes of the business and income arising therefrom is assessable under section 10 ?
