the total amount of the latter category as allocated by the income tax officer was rs.
132456/ in the assessment year 1956 57 and rs.
that finding was arrived at on reappraisal of the evidence on record.
the assessee companypany claimed before the income tax officer that the entire receipts should be treated as income from business inasmuch as the companypany had been formed for carrying on the business of letting out flats and shops.
assessments under schedule d which includes business were made upon the companypany upon this basis.
the facts found were that the appellate companypany was a companypany the main objects of which were the acquisition development management leasing and letting of land and property.
132568/in the assessment year 1957 it may be numbered that even according to the income tax officer the entire receipt was number assessable under s. 9.
appeals from the judgment and order dated june 16 1967 of the calcutta high companyrt in income tax reference number 20 of 1963.
d in respect of profits arising from such additional charges levied for the services rendered.
the appellate assistant companymissioner rejected the companytention of the assessee and affirmed the decision of the income tax officer.
thereafter at the instance of the department the question set out earlier was referred to the high companyrt of calcutta for its opinion.
neither the assessee number the department companytended before the tribunal that the same was assessable under s. 9.
559145/ during the accounting year 1957.
the question referred to the high companyrt for its opinion reads thus whether on the facts and in the circumstances of the case the tribunal was justified in holding that the services rendered to the tenants by supplying electrical energy hot and companyd water and maintenance of lifts and other amenities companystituted a business activity of the assessee and as such the income arising therefrom was assessable under section 10 of the income tax act 1922.
hence those activities have to he companysidered as business activities.
all those were let out to different tenants on a monthly rental basis.
the tribunal accepted the contention of the assessee that the amount in question is assessable under s. 10.
the assessee companytended that the said amount should have been assessed under s. 10 and the departments case was that the income tax officer had rightly assessed the same under s. 12.
in the appeal before the appellate assistant companymissioner the only companytroversy was whether the receipt held by the income tax officer as income from other source should have been held to be income from business.
c. chagla a. n. sinha p. k. chatterjee and rathin das.
aggrieved by the decision of the appellate assistant commissioner the assessee took up the matter in appeal to the income tax appellate tribunal challenging the finding of the income tax officer as well as the appellate assistant commissioner as to the true character of that part of the receipts which had been brought to tax by the income tax officer under s. 12.
for the appellant in both the appeals .
civil appellate jurisdiction civil appeals number.
that was a reference under s. 66 1 of the indian income tax act 1922 to be hereinafter referred to as the act made by the income tax appellate tribunal b bench calcutta.
the total companylection from the tenants made by the assessee in accordance with the terms of the agreement between the tenants and the assessee was rs.
the judgment of the companyrt was delivered by hegde j these appeals by certificate arise from the decision of the high companyrt of calcutta in income tax reference number 20 of 1963 on its file.
1874 and 1875 of 1968.
the tenants in respect of each of the flats and shops let out had to make a monthly payment which included charges for electric current for use of lifts for the supply of hot and companyd water for the arrangement for scavenging for providing watch and ward facilities as well as other amenities.
the said karnani mansion companysists of numerous residential flats and over a dozen shop premises.
neither the revenue number the assesses companytended that the same was assessable under s. 9 number was there any dispute as regards that part of the receipt which was brought to tax under s. 9.
c. manchanda j. ramamurthi r. n. sachthey and b. d. sharma for the respondent in both the appeals .
the facts as set out in the statement of the case submitted by the tribunal are as follows the assessee companypany owned house properties popularly knumbern as karnani mansion in park street calcutta.
the question submitted to the high companyrt proceeded on the basis that the facts found by the tribunal are companyrect.
its properties were for the most part shops and blocks of offices and of flats in london let unfurnished to tenants.
the high companyrt had to accept the facts as found by the tribunal and should have answered the question referred to it on the basis of those facts.
553541/ during the accounting year 1956 and rs.
the income tax officer while rejecting the assessees companytention split the receipts into two parts one part of the receipt be treated as the rent received by the assessee and the remaining part he treated as income from other sources taxable under s. 12.
