COMMISSIONER OF INCOME TAX Vs. S. K. SAHANA & SONS (P) LTD.

JUDGEMENT

(1.) By the Court - This is a reference u/s 256(1) of the IT Act, 1961, made by the ITAT, Patna, and a statement of the case has been submitted to this court for our opinion on a question in these terms :

(2.) The assessee is a public limited company. The assessment year involved is 1965 -66. The assessee owned a colliery at Dhanbad. It allowed a firm of Managing Agents to manage the said colliery and received a sum of Rs. 97,228 as commission deduction Rs. 20,000 for expenses. The ITO determined the income from this source at Rs. 77,228. The ITO held the income to be taxable under the head other sources and not as business income as claimed by the assessee for the same reasons as discussed in the earlier assessment years. A copy of the order of the ITO is enclosed as Annexure -A to the statement of the case. On appeal, the AAC confirmed the finding of the ITO. A copy of the order of the AAC has been enclosed as Annexure -B to the statement of the case. On further appeal, the ITAT, relying on its previous order for the asst. yrs. 1963 -64 and 1964 -65, confirmed the order of the AAC. A copy of the order of the Tribunal has been annexed and marked as Annexure -C.

(3.) It is needless to go into the principles of law involved since the matter has been set at rest by a bench of this court to which one of us(S. K. Jha, J.) was a member for the same assessee for the two previous assessment years, namely, 1963 -64 and 1964 -65. That case is reported in CIT, Bihar v/s. S. K. Sahana and Sons Ltd. (1976) was also a party to that judgment. This case has clearly decided that such income is an income from business. This case is, thus, concluded by the judgment in that case.