Judgment

SARKAR, J. : The appellant which is a limited company is the owner of a certain building constructed on Plot No. 7 on the Church Gate Reclamation in Bombay which it had fitted up with furniture and fixtures for being run as a hotel. By a lease dated August 30, 1949, the appellant let out the building fully equipped and furnished to one Voyantzis for a term of six years certain from December 9, 1946 for running a hotel and for certain other ancillary purposes. The lease provided for a monthly rent of Rs. 5950/- for the building and a hire of Rs. 5000/- for the furniture and fixtures. The question in this appeal is how the income received as rent and hire is to be assessed that is, under which section of the Income-tax Act, 1922 is it assessable ? The appellant contends that the entire income should be assessed under S. 10 as the income of a business or, in the alternative, the income should be assessed under S. 12 as income from a residuary source, that is a source not specified in the preceding sections 7 to 11 with the allowances respectively specified in sub-sections (3) and (4) of that section.

2. For the assessment year 1953-54, the appellant was taxed under S. 9 of the