INCOME – CHARGEABILITY AND COMPUTATION
RECEIPTS DURING DISCONTINUANCE OF BUSINESS
No purchase and sale after certain date and employees discharged- Mere realization and payment for some time – Discontinuance of business
Ghanshyam Das Gangadhar Vs CIT (Pat) 19 ITR 349
When assessee's business has come to a close or when the assessee let out the assets with the intention of closing the business, the property which at one time was a commercial asset would cease to be so and the income from letting out of such an asset would not be business income.
New Savan Sugar & Gur Refining Co. Ltd. Vs CIT (SC) 74 ITR 7
Metal Products of India Vs CIT (P&H) 293 ITR 618
After discontinuing business, machinery and vehicles let to sister concerns - Hire charges received is income from other sources – Let out property with amenities – Air conditioning charges received is income from other sources.
Express News papers Pvt. Ltd. Vs CIT (Mad) 227 ITR 325
Madras Silk & Rayon Mills P. Ltd. Vs ITO & Anr.(Mad) 262 ITR 122 – rental income
from factory building.
Assessee not carrying on any business during the year – lease rent of machinery – Other Sources income.
CIT Vs K. Narendra (Del) 246 ITR 579
Business closed and quarters attached to factory let out – Rental income – Not business income.
CIT Vs Ramdas & Sons (Patna) 236 ITR 786; 225 ITR 416
The Saswad Mali Sugar Factory Limited Vs CIT (Bom) 236 ITR 706
Narain Swadeshi Weaving Mills Vs Comm. Of Excess profits Tax (SC) 26 ITR 765 (Plant & Machinery let out)
Universal Plast Limited etc. Vs CIT (SC) 237 ITR 454