SULTAN BROTHERS (P) LTD. vs COMMISSIONER OF INCOME-TAX

The Supreme Court held that the letting of a fully furnished building for hotel purposes does not constitute a business under Section 10 of the Income Tax Act, 1922. The Court established that the determination of whether a letting is a business must consider the specific circumstances of each case, emphasizing that mere ownership and leasing do not equate to conducting a business. The income from the lease was not assessable as business income, but the income from the hire of furniture and fixtures was assessable under Section 12(4) of the Act, allowing for certain allowances as specified in the Act.