Law: Income Tax Act, 1922

Section: 9,10,66,66(1)

Income-tax Act (XI of 1922)---Ss.9, 10 & 66(1)---Income from property---Rejection of claim of assessee without cogent reasons--Assessing Officer treated the declared income from property under S.9 of Income-tax Act, 1922, and rejected the claim of the assessee---Income-tax Tribunal following its earlier decision, directed that income declared from business property let out should be assessed under S.10, Income-tax Act, 1922---Validity---Where the Assessing Officer was to proceed to reject a claim of the assessee contending that income disclosed by him fell under a particular head, the officer was required to support his findings by cogent reasons and by bringing on record sufficient material---Finding of the Tribunal amounted to holding as a fact that letting out property was part of business of the assessee--­Findings of the Assessing Officer .were not supported by cogent evidence the Tribunal was justified in following its earlier order in .circumstances. JUDGMENT NASIM SIKANDAR, J.---The Lahore Bench of the Income-tax Appellate Tribunal, at the instance of the Commissioner, Income-tax, Lahore, has framed the following question for our answer:--- "Whether on the facts and in the circumstance of the case, the Tribunal was right in holding that the rental income from property was not assessable under section 9 but under section 10 of. the Income-tax Act?" 2. The assessee a private limited company for the assessment years ­1969-70 and 1970-71, returned income from different sources. The assessing officer by way of the assessment order, dated 26-6-1973 treated the declared income from property under section 9 of the Late Act, 1922. On appeal the Income-tax Appellate Tribunal with reference to their earlier decision recorded in respect of the same assessee proceeded to direct that income declared from business property let out should be assessed under section 10 of the Act instead of section 9. 3. After hearing the learned counsel for the Department, we are of the view that the answer to the question needs to be in the affirmative. Section 9 of the Late Act provided for assessment of income tax under the head 'property…

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