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2018 (6) TMI 1543 - HC - Income TaxIncome from letting of the assessee s commercial property Business income or income from house property - Held that - A Division Bench of this Court in M/S. KEYARAM HOTELS P. LTD. VERSUS THE DEPUTY COMMISSIONER OF INCOME TAX 2014 (11) TMI 633 - MADRAS HIGH COURT answered the substantial questions of law in favour of the Revenue and thus dismissed the appeal. A special leave petition was filed as against the order of the Division Bench, which was also dismissed as reported in 2015 (12) TMI 306 - SUPREME COURT OF INDIA as held where the owner of the property exploited the property by leasing out the same and realised income by way of rent, the same was to be assessed under the head Income from house property and not as business income the order of the Tribunal is upheld decided against assessee.
Issues:
1. Disallowance of expenditure under the head 'Income from House Property' 2. Remittance of issue to examine income components for services and maintenance Issue 1: Disallowance of expenditure under the head 'Income from House Property' The High Court considered the appeal against the Tribunal's order for the assessment year 2004-2005. The Revenue challenged the Tribunal's decision not to uphold the Assessing Officer's computation of income from letting the commercial property under the head 'Income from House Property.' The Tribunal remitted the issue to the Assessing Officer to examine any component in the income for providing services and maintenance for the commercial complex. The Division Bench of the High Court had earlier answered substantial questions of law in favor of the Revenue, which was confirmed by the Supreme Court. The Court noted that the decision of the Division Bench stands, but allowed the assessee to seek adjudication on merits in a pending review petition. The Court dismissed the Tax Case Appeal, stating that if the review petition is allowed in favor of the assessee, the consequence would apply for the assessment year 2004-2005. Issue 2: Remittance of issue to examine income components for services and maintenance The High Court observed that after the Tribunal's remand order, the Assessing Officer reiterated the earlier stand, which was confirmed by the appellate authority and the Tribunal. The assessee challenged the order in T.C.A. No.815 of 2014, and the Division Bench of the High Court answered substantial questions of law in favor of the Revenue. Despite a subsequent review petition, the Court held that the earlier decision of the Division Bench, upheld by the Supreme Court, stands. The Court stated that the order would not prevent the assessee from seeking adjudication on merits in the pending review petition. If the review petition is allowed in favor of the assessee, the consequences would apply for the assessment year 2004-2005. The Tax Case Appeal was dismissed with no costs.
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