2015 (9) TMI 662 - HC - Income Tax

Rental income received by the assessee from the tenants in occupation of the property - income from business OR income from house property - Held that - In view of the fact that the Assessee has accepted the decision of the Income Tax Appellate Tribunal for the AYs 1992-93 till 1999-2000 and has expressed no objection to the Revenue s appeals for AYs 1990-91 and 1991-92 being allowed, the above questions in the Revenue s aforementioned appeals are answered in the negative i.e. favour of the Revenue and against the Assessee. In other words, it is held that even for the said AYs 1990-91 and 1991-92, the rental income received by the Assessee from the tenants in occupation of the property known as Scindia House, Connaught Place, New Delhi shall be taxed as income from house property. - Decided against the Assessee

Summary

Issues:
Appeals under Section 260 A of the Income Tax Act, 1961 against ITAT orders - Eight appeals by Assessee and two by Revenue.

Analysis:
The judgment involves ten appeals under Section 260 A of the Income Tax Act, 1961 against the orders of the Income Tax Appellate Tribunal (ITAT). Out of these, eight appeals are filed by the Assessee, while two are filed by the Revenue. The Assessee's appeals cover various Assessment Years (AY) from 1992-93 to 1999-2000, and the Revenue's appeals are for AYs 1990-91 and 1991-92.

The Assessee decided to withdraw all their appeals, and accordingly, ITA Nos. 162/2003, 836/2007, 841/2007, 848/2007, 849/2007, 850/2007, 859/2007, and 860/2007 were dismissed as withdrawn. The Assessee accepted the orders of the ITAT for the mentioned AYs, leading to the dismissal of their appeals.

Regarding the Revenue's appeals, the questions of law framed by the Court in ITA 355/2002 and ITA No. 101/2002 for AYs 1990-91 and 1991-92 respectively were related to the taxation of rental income and income from the sale of property. The Court examined whether the rental income from the property known as Scindia House should be taxed under 'income from business' or 'income from house property.'

The Court ruled in favor of the Revenue, holding that the rental income received by the Assessee from Scindia House should be taxed as income from house property for AYs 1990-91 and 1991-92. Consequently, the impugned orders of the ITAT were set aside, and the Revenue's appeals, ITA Nos. 101 and 355 of 2002, were allowed. This decision clarified the tax treatment of rental income for the mentioned Assessment Years in favor of the Revenue.