Law:

Section:

Section 256, read with section 28(i), of the Income-tax Act, 1961 - Reference - Question of fact - On nationalisation of its business assessee let out its building and derived rental income - Tribunal held that it could not be said that assessee's business had been closed and that rental income, therefore, could not be said to be income from house property - Whether a question of law arose from Tribunal's order - Held, no FACTS Following the nationalisation of its kendu-leaf business, the assessee let out its business premises and got rent which was treated as income from house property. The Tribunal held that merely because there was nationalisation of kendu leaf trade it did not mean that the business of the assessee in kendu leaf had been closed. When the business was not closed and the houses were not being used for the purpose of business that year, they had been rented out. Therefore, rent from said premises could not be said to be income from house property or the income ancillary to the same. On an application under section 256(2): HELD When on appreciation of evidence, the Tribunal had come to a conclusion that the business had not closed, it became a question of fact. Therefore, no question of law arose from the Tribunal's order holding that the rental income from the building in the instant case was not assessable as income from house property. S. Roy for the Applicant. Bibek Mohanty, G.N. Padhi, A.N. Patnaik and M.R. Swain for the Respondent. JUDGMENT S.C. Mohapatra, J.-This is an application under section 256(2) of the Income-tax Act, 1961. 2. The assessee is an unregistered firm. It carries on business of kendu leaves. There was nationalisation of kendu leaf trade. The assessee which had buildings…

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