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TMI Blog2013 (4) TMI 263X X X X Extracts X X X X X X X X Extracts X X X X ..... ement between the assessee firm and M/s Sant Enterprises. Therefore, the CIT(A) rightly followed the above decision of Hon'ble Jurisdictional High Court and held that the income of commission received from M/s Sant Enterprises is to be assessed as business income. - ITA Nos.1601/Del/2012, 1602/Del/2012 & 1603/Del/2012 - - - Dated:- 15-2-2013 - G. D. Agrawal And I. C. Sudhir,JJ. Shri S.K.Upadhaya, Sr.DR Shri G.S.Grewal Ms. Harsimran Grewal, Advocates. ORDER These appeals are filed by the Revenue against the order of learned CIT(A)-XXIV, New Delhi dated 10th January, 2012 for the AY 2003-04 to 2005-06. 2. The only common ground raised in all these appeals by the Revenue reads as under:- "On the facts and in the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned CIT(A) who accepted the assessee's contention and held as under:- "4.6 I have carefully gone through the case laws submitted by the appellant in support of its arguments and the documents placed on record. I have carefully perused the assessment order in great details. I have also noted carefully the statement given before me by Sh. Amanpreet Singh, Partner of M/s Sant Enterprises. I am of the opinion that the instant case is clearly covered by the judgment of Hon'ble Delhi High Court in the case of Faith Real Estate Pvt.Ltd. (supra). The premises belonging to the appellant are commercial premises. The appellant has entered into a valid franchisee agreement with the franchisee partner M/s Sant Enterprises. In accordance with the franc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd any infirmity in the order of learned CIT(A). The Assessing Officer has arrived at the conclusion that the consideration paid by M/s Sant Enterprises was for the use of premises because no services were provided by the assessee. The above view was arrived at by the Assessing Officer on the basis of statement of Shri Amanpreet Singh, partner of M/s Sant Enterprises. Before the learned CIT(A), it was pleaded by the assessee that the statement of Shri Amanpreet Singh was recorded behind the back of the assessee and no opportunity to cross-examine him was given. The learned CIT(A), therefore, directed the Assessing Officer vide letter dated 20th September, 2011 to redress the grievance of the assessee by affording him an opportunity to cross ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing of fact has been arrived at concurrently by both the CIT(A) and the Tribunal that the arrangement was not a sham and it was not a mere rent agreement but in fact required involvement of the assessee in the management of the store also, therefore, the amount received by the assessee cannot be treated as 'income from house property' and it should be treated as 'business income'." 8. The above decision of Hon'ble Jurisdictional High Court would be squarely applicable to the facts of the assessee's case because here also, the assessee had given the premises owned by it to M/s Sant Enterprises and is getting 3% commission on the sales made by M/s Sant Enterprises. Before the CIT(A), partner of M/s Sant Enterprises affirmed that the staff m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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