E. D. Sassoon And Company Ltd vs The Commissioner Of Income-Tax,Bombay ... on 14 May, 1954
15. At the hearing, learned advocate for the assessee submitted that in view of the facts as found, the income which had been received by M/s. Surrendra Overseas Ltd. from the leasehold can never be the business income of the assessee. The assessee did not receive the said income and the amounts of rent collected by M/s. Surrendra Overseas Ltd. never reached its hands. It should not be held that such income was the real income of the assessee. In support of his contentions, learned advocate for the assessee cited S.G. Mercantile Corporation (P.) Ltd. v. CIT . In this case, the assessee had been incorporated with the object, inter alia, of obtaining by way of leases or otherwise real property and to deal with the same commercially. The assessee took on lease a market for a long term and developed the same. The said market was sub-let thereafter in terms of the lease. The question arose whether the income of the assessee from sub-letting a portion of the market was
assessable as business income under Section 10 of the Indian Income-tax Act, 1922, or as income from other sources under Section 12 of the said Act.