JAWAHAR LAL GUPTA, J. - (1.) THE assessee filed its return of income for the asst. year 1990 91. The assessee had, inter alia, shown income as under : The assessee claimed various expenses like salary to staff, remuneration to the directors and depreciation on let out property. The AO held that" the rental income was assessable as income from property. The interest income had to be assessed as income from other sources. The expenditure was admissible only to the extent it was incurred to earn the interest. Profit on sale of plot was held as income from "capital gain". Thus, the taxable income was fixed at Rs. 3,59,'470. Aggrieved by the order, the assessee filed an appeal and claimed that the additions had been wrongly made. The appeal was accepted. The Revenue filed an appeal before the Tribunal. The appeal having been dismissed, it has approached this Court through this appeal under S. 260A of the IT Act, 1961.
(2.) MR . R. P. Sawhney, counsel for the Revenue, contends that the assessee was not entitled to claim that the income by way of rent, interest and profit on sale of plot was income from business. Is it so ? A perusal of the order passed by the Tribunal shows that the assessee's business was "of purchase, lease, exchange or otherwise acquire land, building and other immovable properties of any type or description and rights connected with land and turn the same into account in any manner whatsoever". Thus, the assessee's income was from sale or leasing out of property, etc. In this situation, the CIT as well as the Tribunal have come to a firm finding that the income of the assessee was from business.
(3.) MR . Sawhney contends that the claim for depreciation could not have been allowed. The CIT had Rs. (i) Income from rent 2,34,610 (ii) Income from interest 1,76,768 (iii) Profit on sale of plot 15,000 erred in accepting the assessee's claim on the total property.;