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TMI Blog2003 (1) TMI 257X X X X Extracts X X X X X X X X Extracts X X X X ..... in the circumstances of the case, the learned CIT(A) has erred both on facts and in law in directing the AO to treat the income from letting of godown as income from business and not as income from house property". 2. While completing the assessment for asst. yr. 1992-93, the AO noted that assessee-company had shown receipt of Rs. 2,08,308 as rent from M/s Polyplex Corporation Ltd. for letting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... main business of manufacture and sale of engineering goods. According to him the law is clear that a commercial asset can be exploited by an assessee either by itself or through others and the matter of use cannot alter the character of income in the hands of the assessee. CIT(A) considered this and decided the controversy by noting as under: "3. I have considered the contentions of the authori ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... merely by virtue of ownership, the same cannot be said of letting of commercial asset like godown, etc. which invariably involves certain facilities to go with such letting. Hence, it cannot be said that the income arises merely by virtue of ownership of the building, which is an essential prerequisite of house property income. In the circumstances, and in the light of the case law cited above, I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court in the case of CIT vs. Northern India Iron Steel Co. (1995) 123 CTR (Del) 120 : (1995) 211 ITR 370 (Del) wherein part of the building along with machine was given on rent and that income of rent was treated as business income. Another decision relied upon by the learned counsel is that of Hon'ble Kerala High Court in the case of CIT vs. Malabar and Pioneer Hosiery (P) Ltd. (1996) 132 CTR ( ..... X X X X Extracts X X X X X X X X Extracts X X X X
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