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Section 22 of the Income-tax Act, 1961 - Income from house property - Chargeable as - Assessee-company was incorporated with main object to carry on business of dealing with and investment in properties, flats, warehouses, shops, commercial and residential houses - It purchased certain flats for trading purposes - Due to recession in market, said flats could not be sold and, hence, it let out same on licence basis for temporary period and earned monthly income as license fees - Assessee treated said rental income as income from business but revenue authorities treated said income as income from house property - Whether in view of decision in East India Housing & Land Development Trust Ltd. v. CIT [1961] 42 ITR 49 (SC), decision of lower authorities was justified - Held, yes CASE REVIEW S.G. Mercantile Corpn. (P.) Ltd. v. CIT [1972] 83 ITR 700 (SC) and CEPT v. Shri Laxmi Silk Mills Ltd. [1951] 20 ITR 451 (SC)distinguished. East India Housing & Land Development Trust Ltd. v. CIT [1961] 42 ITR 49 (SC) [Para 4] followed. CASES REFERRED TO East India Housing & Land Development Trust Ltd. v. CIT [1961] 42 ITR 49 (SC) [Para 3], United Commercial Bank Ltd. v. CIT [1957] 32 ITR 688 (SC) [Para 3], Commercial Properties Ltd. v. CIT ILR 55 Cal. 1057 [Para 4], S.G. Mercantile Corpn. (P.) Ltd. v. CIT [1972] 83 ITR 700 (SC) [Para 4] and CEPT v. Shri Laxmi Silk Mills Ltd. [1951] 20 ITR 451 (SC) [Para 4]. Deepak Tralshawala and Vishnu Hadade for the Appellant. JUDGMENT A.P. Deshpande, J. - This appeal is filed by the assessee taking exception to an order passed by the Income-tax Appellate Tribunal, Mumbai branch dismissing the appeal directed against the order passed by the Commissioner of Income-tax (Appeals). 2. According to the appellant is a private limited company incorporated with the object of dealing in properties. The main object of the company as contained in the memorandum of association was to carry on business of dealing and investment in properties, flats, warehouses, shops, commercial and residential houses. The ancillary object was to carry on business of leasing, hire purchase, renting, selling, re-selling or otherwise dispose of all forms of…

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