Law:

Section:

Section 28(i) , read with section 22 of the Income-tax Act, 1961 [Corresponding to section 10, read with section 9 of the Indian Income-tax Act, 1922] - Business income - Chargeable as - Assessee had let out various flats and shops of a buildings on monthly payments which included, besides rent, charges for providing various services and amenities - ITO rejected assessee's claim for treating receipts as business income, but split them into two parts, one part being treated as rent and other as income from other sources - Tribunal held that second part was assessable as business income under section 10 of 1922 Act - Neither department nor assessee contended that that part was assessable under section 9 of 1922 Act but High court treated that part as income from property under section 9 of 1922 Act - Whether department having all along proceeded on basis that assessee's income was from two different sources, it should not have been allowed to change its case - Held, yes - Whether, services rendered by assessee to its tenants were result of its activities carried on continuously in an organized manner, with a set purpose and with a view to earn profits, and hence, those activities were business activities and income arising therefrom was assessable under section 10 of 1922 Act - Held, yes FACTS The assessee-company had let out various flats and shops and the tenants were required to make a monthly payment which included charges for electric current, use of lifts, supply of hot and cold water, scavenging arrangements, watch and ward facilities as well as other amenities. For all these purposes, the assessee maintained a large number of staff. For the assessee years 1956-57 and 1957-58, the assessee's claim for treating the receipts as business income was rejected by the ITO who split the receipts into two parts, one being treated as rent received by the assessee and the other part being treated as income from other sources taxable under section 12. Neither the revenue nor the assessee contended that the receipts of the second part was assessable under section 9. On second appeal, the Tribunal held that the said amount of the second part was assessable under section…

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