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TMI Blog2013 (11) TMI 303X X X X Extracts X X X X X X X X Extracts X X X X ..... ng income by the Joint Lessees. Liability of filing the return clearly laid upon the Joint Lessees - 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 – Decided against the Revenue. - I.T.A. No. 4171 /Mum/2009, I.T.A. No. 4920 /Mum/2009, I.T.A. No. 4671 /Mum/2010 - - - Dated:- 30-8-2013 - SHRI VIJAY PAL ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndji Naranji Co. (vi) Dr. L.C. Jariwala (vii) Shri Sakalchand G. Shah Others representing M/s. Sakalchand G. Shah Co. All collectively called "The Joint Lessees". The Lease was for a period of 99 years w.e.f. 03.01.1948 to 02.01.2047 on the basis of Lease Rent @ Rs. 11,666.67 p.m. Later on, the party no. 6 and 7 above terminated themselves from the agreement and assigned their rights in lease to the other Joint Lessees and the Party no. 1 merged into Voltas Ltd. Accordingly, the Joint Lessees comprised of the following members: (i) Voltas Limited (ii) The Bombay Silk Mills Ltd. (iii) New India Mosaic Marble Co. Pvt. Ltd. (iv) Calico Dyeing Printing Works (v) M/s. Anandji Naranji Co. The afore ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... jab National Bank, which was in the name of the assessee company. The AO further observed that the assessee has also received income from other sources, income on transfer of tenancy right, short term capital gains in addition to rental income from the tenants. The AO found that the assessee has shown only the management charges as its income and none of the income mentioned herein above were declared in its return of income. 5. The assessee was asked to explain the source of investments, why the rent has not been shown as its income the assessee was also asked to explain the taxability of other income like capital gains and dividends derived by the assessee company and whether any return of income is being filed by the Joint Lessees as ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s cannot be taxed in the hand of the assessee. The CIT(A) also deleted the addition made under the head income from the house property. By observing that the rental income belongs to the Joint Lessees and not the assessee. For similar reasons the additions made under the head capital gains were also deleted. 10. Aggrieved by the finding of the CIT(A) Revenue is before us. 11. The DR strongly supported the findings of the Assessing Officer. It is the say of the DR that the assessee has grossly failed in substantiating its claim that the impugned income belongs to the Joint Lessee. The DR strongly submitted that no evidence have been brought on record for these three assessment years that the Joint Lessees had declared these income in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the Joint Lessees, the assessee was receiving management charges which have rightly been declared in its return of income. We find force in the contention of the Counsel that the assessee cannot be held responsible for the failure of returning income by the Joint Lessees. 14. However, at the same time we find that in the Assessment Years 2008-09 in the case of the assessee while making the assessment u/s 143(3) of the Act. The AO has made the following observations at Para-4 of fresh order. "In this case, in the Assessment Years 2005-06, 2006-07 2007-08 additions were made in the hands of the assessee company as the Joint Lessees of Industrial Estates was not filing their Returns of Income for these Assessment Years. Howeve ..... X X X X Extracts X X X X X X X X Extracts X X X X
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