- (1.) On a reference application under Section 256(1) of the Income-tax Act, 1961, the Tribunal has referred the following question set out at page 10 of the application for the opinion of this court (see [1987] 167 ITR 60, 64) : "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that the income as received by Surendra Overseas Limited, be assessed as the income of the assessee from business from leasehold interest ?"
(2.) The facts, in short, are that for the assessment years 1975-76, 1976-77, 1977-78 and 1979-80, the Income-tax Officer has questioned the assessee why the income from leasehold property, which has been sub-leased to Surendra Overseas Limited, should not be taxed in the hands of the assessee and also why that income should not be taxed as income from house property.
(3.) After hearing" the assessee, the gross rent estimated in the aforesaid years was taxed in the hands of the assessee as income from house property. In appeal, the Commissioner of Income-tax (Appeals) has directed that income from the leasehold property should be assessed under the head "Business".;