Law:

Section:

Section 28(i) of Income-tax Act, 1961 - Business Income - Chargeable as - Assessment years 1977-78 and 1978-79 - One of partners of assessee-firm had brought in certain property as capital contribution at time when firm was originally formed - Assessee claimed that income from said property should be assessed under head 'Business' - Assessing Officer, however, assessed income from said property under head 'income from house property' - Tribunal, having found that property in question was brought into partnership business by one of partners for its exploitation as a business asset and further, that, right from inception of firm, income from said property had been assessed under head 'Business, directed Assessing Officer to treat income from said property under head 'Business' - Whether there was any infirmity in conclusion arrived at by Tribunal - Held, no FACTS The assessee-firm, having five partners, was constituted for running a hotel and to run any other business or businesses as may be mutually agreed upon by the partners. One of the partners had brought in some property as capital contribution at the time when the firm was originally formed. The assessee claimed that for the relevant assessment years, the income from said property should be assessed under head 'Business'. However, the Assessing Officer assessed the income from the said property under the head 'Income from house property'. On appeal, the Commissioner (Appeals) upheld the order of the Assessing Officer. On further appeal, the Tribunal found that the property in question was brought into the partnership business by one of the partners for its exploitation as a business asset and that, right from the inception of the firm, the income from the said property had been assessed under the head 'Business'. Accordingly, the Tribunal directed the Assessing Officer to treat the income from the said property under the head 'Business'. On reference: HELD The revenue had not been able to point out anything to dislodge the findings of fact arrived at by the Tribunal. In the circumstances, there was no infirmity in the conclusion arrived at by the Tribunal. Accordingly, it was to be held that the Tribunal…

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