JUDGMENT

B.P. Jeevan Reddy, J.-Leave granted. Heard the counsel for both the parties.

2. The Commissioner of Income Tax, Calcutta has preferred this appeal against the Judgment of the Clacutta High Court in Income Tax Reference No. 88/1986, answering the question referred at the instance of the assessee, in favour of the assessee. The question referred under Section 256(1) of the Income Tax Act is "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 M/s. Surrendra Overseas Limited, be assessed as the income of the assessee from business from leasehold interest?"

3. Under a deed of assignment, dated 3rd September, 1966, the assessee obtained the leasehold interest, for the unexpired period of lease, in respect of premises No.3, 5, 7, 9, 11, 13 & 15, Park Street, Calcutta, from Credit Transactors. In the accounting year relevant to the Assessment Year 1971-72, the assessee executed a sub-lease in respect of a portion of its leasehold interest in favour of M/s. Surrendra Overseas Limited, another limited company "associated with the assessee". The deed of sub-lease was, however, not registered though it is