High Court Of Calcutta
CIT vs. Model Manufacturing Co. (P) Ltd.
Sections 22, 56, 57
Dipak Kumar Sen & Shyamal Kumar Sen, JJ.
IT Ref. No. 59 of 1983
10th March, 1986
Counsel Appeared
R.C. Bagchi, for the Revenue : R. Khiatan, for the Assessee
DIPAK KUMAR SEN J.
On the application of the Revenue under s. 256(1) of the IT Act, 1961 the following questions have been referred by the Tribunal as questions of law arising out of its order for the opinion of this Court :
“(1) Whether, on the facts and in the circumstances of the case, the services rendered by the assessee in providing electricity, use of lifts, supply of water, maintenance of staircase and watch and ward facilities to the tenants constituted separate activities distinct from the letting out of the property and were no incidental to such letting out ?
(2) Whether, on the facts and in the circumstances of the case, the serviced charges realised were not part and parcel of the income derived from house property assessable under s. 22 of the IT Act,. 1961, and that they were assessable under the head ‘Income form other sources’ ?
(3) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that depreciation on lifts and transformers was allowable under s. 57 of the IT Act, 1961 ?”
The controversies raised in questions Nos. (1) and (2) are covered by a decision of this Court in the case of the same assessee in Income-tax Reference No. 261 of 1976 intituled in CIT v Model Manufacturing Co. (P.) Ltd., where the judgment was delivered on March 12, 1981.
Following the said judgment we answer both the questions in the affirmative and against the Revenue. Question No. (3) is ancillary to question No. (2) and in view of the answer to question No. (2), we answer question No. (3) in the affirmative and against the Revenue.
In the facts and circumstances of the case, there will be no order as to costs.
SHYAMAL KUMAR SEN J
I agree.
[Citation : 175 ITR 374]
