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TMI Blog2011 (2) TMI 794X X X X Extracts X X X X X X X X Extracts X X X X ..... sister concern and assessee as per Hire agreement dated 1.4.2000 does not indicate any complex commercial activity in the nature of business. 2. On the facts and circumstances of the case and in law the Ld. CIT (A) erred in directing the Assessing Officer to consider receipt of '1 lakh as income from profession without appreciating the fact that no activity of management consultancy was carried on during the year under consideration. 3. On the facts and circumstances of the case and in law the Ld. CIT (A) erred in directing the Assessing Officer to allow interest expenditure of '25 lakhs to partners holding that it is an allowable expenditure u/s.40 (b) (iv) of the I.T. Act ignoring the fact that no business activity was carried on during ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ises is fixed at 10,75,000/- per quarter and in respect of the hire of the assets, the hire charges are sold at Rs 12 lakhs per annum. The assessee has declared the total receipt of the lease and hire charges of 86,00,000/- which includes Rs 31 lakhs, receipts of the earlier years. The assessee shown the lease rent as well as hire charges as its business income and claimed various expenditure. The A.O. did not accept the head under which the assessee has shown lease rent and hire charges income. The A.O. was of the opinion that the lease rental as well as the hire charges cannot be treated as income derived from the business activity and same is to be taxed under the head "income from house property". The assessee contended that as the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... premises as well as residential premises treated as income from the house property. The assessee has not challenged the said finding and it has reached the finality. So far as the income from the hire charges is concerned, the Ld. CIT (A) held that in the preceding two assessment years, the A.O. himself has accepted that the said income constitute the business income and the assessments for the A.Ys. 2001- 02 and 2002-03 are completed u/s. 143(3). The Ld. CIT (A) has also noted that the total hire charges declared by the assessee at Rs 45 lakhs include the arrears also of the previous year. The Ld. CIT (A) accepted the plea of the assessee that to the extent of the hire charges of the business assets, the same are to be treated as business ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A.O. In the preceding year, the AO. Himself has treated income of hire charges as the business income in the assessment completed u/s. 143(3). Hence, no different view can be taken. We, therefore, confirm the order of the Ld. CIT (A) treating the hire charges received from hiring of the business assets as income from business and accordingly, ground no.1 is dismissed. 5. So far as ground no.2 is concerned, it is in respect of treating 1 lakh, which are arrears of the consultancy fees received by the assessee from MPSRTC. The Ld. Counsel submitted that it is a professional income and in the A.Y. 1998-99, the part of the same was treated as business income. He further submits that as the assessee is following cash system of accounting and he ..... X X X X Extracts X X X X X X X X Extracts X X X X
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