Law:

Section:

Section 28(i), read with section 2(13), of the Income-tax Act, 1961 - Business income - Assessee entered into an agreement for purchase of a property and took its possession thereof - It earned income by giving said property for use for shooting films, training horses and by selling dairy products - Assessee computed this income under the head 'Profits and gains of business or profession' and claimed deduction of expenses incurred - Tribunal did not accept the assessee's claim but in subsequent years Tribunal had difficulty in accepting its earlier decision and held that investigation was necessary before deciding whether impugned income should be assessed as business income or as income from other sources - Whether since activities of assessee were same all years, matter had to be remanded to ITO to redo assessment in accordance with law so that there were not contrary decisions for different years by different authorities - Held, on facts, yes Facts The assessee-company entered into an agreement for purchase in regard to a property and took its possession. The assessee earned income by giving the property for use to film companies for shooting films, to the house owners for training race horses and also by selling dairy products. The assessee filed returns computing the income under the head 'Profits and gains of business or profession' and claimed deduction of the expenses incurred. The ITO did not accept the claim of the assessee and computed the income as rent from the property and the miscellaneous receipts under the head 'Income from other sources'. On appeal, the AAC, however, accepted the said claim. On further appeal, the Tribunal was of the opinion that the assessee did not carry on any-business and there was no concerted organised activity which could be regarded as a business of allowing the film producers to shoot films. It set aside the order of the AAC and restored the assessment made by the ITO. The Tribunal, for subsequent years found considerable difficulty in accepting its earlier decision and stated that the matter required thorough factual investigation and unless full facts were found it was not possible to give a satisfactory answer as…

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