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11. Applying these broad principles to the facts of this case, it is really difficult to see how the Tribunal lost sight of the fact that the business of a boarding and lodging house is not a business of the type which could be commenced overnight. It would comprise of certain preliminary activities which have got to be carried out before it can be said that the business has commenced in the popular sense. For the purpose of starting the business of a boarding and lodging house, the assessee has got to obtain a suitable building where it can, with minor changes as little as possible, make the building more serviceable and suitable for the business of a boarding and lodging house. It should be noted that the building, which had been placed at the disposal of the firm, was a building comprising of as many as 28 independent rooms with attached bath-rooms which were let out to different offices and commercial establishment before they were made available for the business of this firm. It is no doubt true that the assessee carried out certain repairs and changes, but in our opinion, the Tribunal has without any warrant in that behalf concluded wrongly that the changes were major structural changes. The list of repairs which has been provided before the Tribunal clearly indicates that there were no major structural changes except that of putting up the lift or making it more ventilated. The AAC has found that the building comprised of 28 single rooms with attached bath-rooms and that it was not difficult for him to accept the claim of the assessee that the business commenced from the date of the acquisition of the building. It is no doubt true that the assessee had started engaging staff from 1st January, 1968, and all the necessary staff of managers, cooks, bearers, etc., was engaged by about 28th February, 1968. It is also true that formal inauguration of the hotel was made on 24th February, 1968. These facts of some repairs, renovation and such other structural changes and the employment of the necessary staff cannot be said to be such facts that it could be urged successfully in support of the view of the Tribunal that the assessee had not set up the business. The business of boarding and lodging house would necessarily comprise of variegated activities commencing from the stage of acquisition of a proper and suitable building making it more suitable and convenient for the business of a hotel, purchasing linen, cutlery, furniture, etc., as may be required for the business; appointing the staff managers, bearers and ultimately reaching the stage of receiving the customers. It would be de hors the commercial sense to assert that it is only when one reaches a take-of stage for receiving customers that one can be said to have set up the business for a boarding and lodging house. The Tribunal in our opinion has laid a wrong emphasis on the requirement of being ready for commencement of business s pointed out in the distinction made by Chagla C. J in western India Vegetables Products Ltd case [1954] 26 ITR 151 (Bom), where it expressed the distinction between "commencing a business" and "setting up a business by saying that when a business is established and is ready to commence business then it can be said of that business that it is set up. The words "ready to commence" would not be necessarily mean that all the integrated activities are fully carried out and/or wholly completed so that the business can be commenced. In our opinion, the said requirement is also complied with in a given case where an assessee has undertaken the first of the kind of integrated activities of which the business is overall comprised of. In that view of the matter, therefore the Tribunal was not justified in reaching the conclusion as it did in saying that the assessee had not set up the business till 24th February, 1968.

13. It is always a question of fact whether in a given case a business has been set up or not, and in order to decide whether in a given case the business has been set up or not, the court has to consider what is the nature of the business, whether it comprises of integrated activities, such other relevant factors for purposes of determining as to whether in a given case it can be said that the business has been set up to not. The very fact that in the present case a partnership business of a boarding and lodging house and for that purpose the first thing was to acquire a proper and suitable building, then to make it more suitable and efficient for the purposes of the business and thereafter to employ the competent staff and to start the business in right earnest. If this was the nature of the business and we have no doubt in our mind that it is, it cannot be gainsaid that the moment the assessee acquired the building and started putting it in shape it must be held that the business of boarding and lodging house was set up. We have not been able to appreciate for what purpose such a huge building have been placed at the disposal of the firm without any compensation except that of the business of a boarding and lodging house. It is no doubt true that some repairs and structural changes have been made. But they are not of a substantial or major type and were effected only with a view to make the building more suitable and efficient for the purpose of the business. In that view of the matter therefore we are of the opinion that the Tribunal has committed an error of law in holding that the assessee had not set up the business till 24th February, 1968. In our opinion the assessee had set up the business when the building was placed at the disposal of the firm, that is on July 1st, 1967.