Madras High Court
Commissioner Of Income-Tax vs Chennai Properties And Investments ... on 24 April, 1995
Equivalent citations: [1996]217ITR640(MAD)
Author: T. Jayarama Chouta
Bench: T. Jayarama Chouta
JUDGMENT
1. In this tax case petition, the Department requests this court to direct the Tribunal to refer the following questions of law, said to arise out of the order of the Tribunal, for the opinion of this court, under section 256(2) of the Income-tax Act, 1961:
" (1) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that the rent receipts derived by the assessee-company from letting out of properties should be assessed under the head 'Business' thereby allowing the expenses incurred for letting out the properties, as business expenditure?
(2) Whether, on the facts and in the circumstance of the case, the Appellate Tribunal was right in not considering the applicability of the provisions of section 43B for disallowing the disputed urban land tax if the income is to be assessed under 'business' and the non-deductibility of the cost of supplying drinking water from the income from property'? "
2. In so far as question No. 1 is concerned, a similar question was directed to be referred by this court in Tax Case Petition No. 33 of 1990 by order dated April 23, 1990. So far as the second question is concerned, the answer to be given on the first question will have a bearing in deciding the second question. Accordingly, we direct the Tribunal to refer the aforesaid two questions of law for the opinion of the this court along with the statement of facts of the case. Accordingly, this tax case petition is ordered.