1998 PLP 1072 (PTD)
COMMISSIONER OF INCOME-TAX Versus ALLAHABAD MILLING CO. (PVT.) LTD.
| Citation | 1998 PLP 1072 (PTD) |
| Forum / Court | 221 I T R 417 |
| Bench Members | V. N. Khare and S. Rafat Alam, JJ |
| Parties | COMMISSIONER OF INCOME-TAX Versus ALLAHABAD MILLING CO. (PVT.) LTD. |
| Primary Law | Income-tax |
Q1: What are the key laws and sections cited in 1998 PLP 1072 (PTD)?
This judgment primarily cites: Income-tax as referenced in Pakistani case law index.
Q2: Which judicial bench decided the case 1998 PLP 1072 (PTD)?
The case was heard and decided by the 221 I T R 417 bench comprising: V. N. Khare and S. Rafat Alam, JJ.
Q3: What is the official citation format for this judgment on Pakistan Law Portal?
Cite this legal precedent as: 1998 PLP 1072 (PTD) (COMMISSIONER OF INCOME-TAX Versus ALLAHABAD MILLING CO. (PVT.) LTD.). Read the full summary and cross-referenced laws free on Pakistan Law Portal.
Laws Cited
Headnotes / Summary
Business income or income from other sources
Income from leasing out of cold storage and ice plant
Assessable as business income. Held, that on a true interpretation of the lease agreement and the memorandum of association of the assessee-company, the Tribunal was legally correct in holding that the income from leasing out of the cold storage and ice plant was assessable as "profits and gains" of business and not under the head "other sources" though such income had been assessed under the head "other sources" till the assessment year 1959-60. C.I.T. v. Allahabad Milling Co. (Pvt.) Ltd. (1992) 195 ITR 325 (All.) applied.
Judgment & Decree
The Income-tax Tribunal, Allahabad, has referred the following questions of law under section 256(1) of the Income-tax Act, 1961, for opinion of this Court: "(1) Whether, on the facts and in the circumstances of the case and on a true interpretation of the lease agreement and the memorandum of association of the assessee-company, the Tribunal was legally correct in holding that the income earned by the assessee from leasing out .of the cold storage and ice plant to Rajendra prasad Kishan Lal should be assessed as 'profits and gains' of business and not under the head 'other sources'? (2) Whether, on the facts and in the circumstances of the case, the Tribunal was legally correct in holding that the income from leasing out of the cold storage and ice plant should be assessed as profits and gains of business in spite of the fact that such income was assessed under the head 'other sources' till the assessment year 1959-60?" An identical question between the parties has been decided in Income-tax Reference No.42 of 1979 connected with Income-tax Reference No.236 of 1979
CIT v. Allahabad Milling Co. (Pvt.) Ltd. (1992) 195 ITR 325 (All), decided by the Hon'ble Chief Justice and Hon'ble Mr. Justice Sakha Ram Singh on April 2. 1991. In view of the above, we answer the questions in the affirmative, in favour of the assessee and against the Revenue. No order as to costs. M.B.A./1266/FC Order accordingly.