9911796707
TMI Blog2013 (11) TMI 303X X X X Extracts X X X X X X X X Extracts X X X X ..... s common order for the sake of convenience and brevity. 2. In all these three appeals pertaining to three different assessment years, the impugned additions have been made under the following head of income; (a) Income from house property; (b) Income from capital gains; (c) Income from other sources; 3. Briefly stated the facts of the case are that the assessee is a Private Limited Company engaged in the business of maintenance and management of the Industrial State Properties. The trustees of the N.M. Petit Charity Fund entered into a Lease Agreement dated 14.04.1950, by which leased out a piece of land admeasuring about 1,02,242 sq. yards situated at Lalbaug, Parel, Mumbai along with various est ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the present case with the sole purpose of management of the said piece of plots on behalf of the Joint Lessees. The Joint Lessees gave a power of attorney to the assessee company by which the assessee was authorized to collect rent on behalf of the Joint Lessees. The assessee was also authorized to make investments on behalf of the Joint Lessees. All the transactions done by the assessee on behalf of the Joint Lessees were routed through the Bank Account of the assessee company. It was also agreed by the Joint Lessees and the assessee company that the assessee company shall charge service charges / management charges to the Lessees. These charges were credited by the assessee to its profit and loss account. 4. While scrutinizing the retur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ks of the assessee company as the Bank Account was operated on behalf of the Joint Lessees, therefore, the investments have been made from the Bank Account of the assessee. It was further explained that each of the Joint Lessees are filing their return of income separately. 7. The AO rejected these submissions made by the assessee on the ground that return of income of the Joint Lessees could not be verified. The AO further observed that the assessee itself is utilizing the funds no part of these funds have been transfered to the Joint Lessees. Thereafter, the AO added the entire rental income, capital gains and investments made under the head income from other sources and completed the assessment. 8. The assessee carried the matter befor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar 2008-09 & 2009-10. The Joint Lessees have shown these incomes by filing return in the status of AOP. The counsel supplied the copies of the return of income. The Counsel concluded that since these income have been taxed in the hands of the AOP, in subsequent Assessment Years, for earlier Assessment Years which are under consideration, the Assessee cannot be taxed for the same. 13. We have considered the rival submissions and carefully perused the orders of the lower Authorities and the material evidences brought on record in the form of Paper Book. It is not in dispute that the assessee is managing the said piece of land on behalf of the Joint Lessees. It is also not in dispute that the Joint Lessees came into possession of the said pie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the AO in assessee's own case clearly show that the liability of filing the return clearly laid upon the Joint Lessees. We also find that the Joint Lessees have filed the return as "Joint Lessees of Industrial Estates" in the status of AOP for Assessment Year 2008-09 and 2009-2010. If the Joint Lessees did not file return for Assessment Year 2005-06, 2006-07 & 2007-08, it was for the Revenue Authorities to explore other possible ways as per the provisions of law to assess the income in the hands of the Joint Lessees. Be that as it may, these incomes cannot be taxed in the hands of the assessee by any stretch of imagination. The CIT(A) has rightly deleted the addition from the hands of the assessee and we do not find any reason to interfere ..... X X X X Extracts X X X X X X X X Extracts X X X X
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