2011 (7) TMI 651

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..... was converted into a private Limited Company - Assessing Authority accepted the contention of the assessee and the rental income was accordingly computed under section 22 of the Act - interest paid by the assessee was claimed deduction. The Assessing Officer did not allow the entire interest as deduction - Appellate Commissioner treated the rental income as income from business and accordingly, d .....

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..... not from business and profession. The assessee was originally a partnership firm. It was carrying on Real estate and property development business. It developed a property near HAL airport, Bangalore. The funds required for the construction were provided partly by the assessee Company and partly as loan from Banks. Since the market for real estate was not encouraging, the property developed by the .....

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..... of the Act. The assessee had collected maintenance charges towards the common area from the tenants and declared the same as business income. This was considered as income under other sources. The administration expenses to the tune of Rs. 33,18,099 and depreciation of car and furniture to the tune of Rs. 97,244 was not considered. The interest paid by the assessee was claimed deduction. The As .....

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..... assessment year 2000-01, both the parties before us object to the direction of CIT(A) to treat the rental receipts as business profits falling u/s 28 of the Act. Both the parties agreed before us that for the said year the rental receipts will have to be computed only u/s 22 of the Act and not u/s 28 of the Act as held by the CIT(A). Thus, so far as the assessment year 2000-01 is concerned, both n .....

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..... r holding it as business income and contended before the Tribunal, it ought to have been treated as income from house property. Acting on their submission when it is treated as income from house property, they are estopped from challenging this appeal. Appeal lacks merits. Therefore, the question of answering the substantial question of law would not arise in the facts and circumstances of this ca .....

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