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TMI Blog2012 (7) TMI 952X X X X Extracts X X X X X X X X Extracts X X X X ..... r for the sake of convenience. 2. Effective grounds of the Revenue, identical in these three appeals, read as follows- 1) The order of the Ld. CIT(Appeals) is erroneous both on facts. 2) The Learned. CIT(Appeals) has erred in admitting additional evidence without granting any opportunity to the AO as requried under Rule 46A of the Income Tax Rules. 3) The Learned. CIT(A) has erred in treating lease rental income as business income and in allowing expenses without any evidence being produced by the assessee. Thus, while the main dispute involved in these appeals relates to the head under which lease rental income of the assessee is to be assessed, viz. under the head business as claimed by the assessee; or under the head ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of 1.1.2007 to 31.3.2008, and lease rent of ₹ 55,00,000 received by the assessee form M/s. Hariyana Steel Centre for the assessment years 2008-09 and 2009-10 respectively, have been brought to tax under the head other sources , as against the assessee s claim for assessing the same under the head business income . 4. On appeal, the CIT(A), on consideration of the elaborate submissions of the assessee before him, in the light of the case law on the point, accepted the contention of the assessee and held, following the decision of the Apex Court in the case of Universal Plast Ltd. V/s. CIT(2378 ITR 1454), that the in the facts of the present case, the lease rental received by the assessee has to be assessed under the head busines ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase rental income of the assessee under the head other sources relied on the TDS certificates issued by the lessee, Hariyana Steel Centre, which were issued in terms of S.194-I of the Act, showing the income under the head rent . But for the reliance on the said TDS certificates, the assessing officer has not made any serious effort to ascertain the intention behind the leasing out of the assets, nexus of the business of the assessee with the exploitation of the assets, and composition of the total income of the assessee, and such other factors which clinch the issue relating to determination of the head under which the lease rental is assessable. In the appellate proceedings, the assessee explained these factors to support its stand for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... properties will amount to exploitation of business where the assets of the business are let out temporarily for making profit for the business and the facts of the case are very much in line with the said propositions in this case. Based on the facts of this case, the ratio of the Hon ble Supreme Court appears squarely applicable to this case. Accordingly, it is held that the lease rent by virtue of exploitation of the commercial assts of the appellant company, amounts to the business income and to be taxed accordingly. We find no infirmity in the above conclusion arrived at by the CIT(A). We accordingly, uphold the impugned orders of the CIT(A), and consequently, grounds of the Revenue in these appeals are dismissed. 8. In the resul ..... X X X X Extracts X X X X X X X X Extracts X X X X
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