9911796707
TMI Blog2016 (6) TMI 648X X X X Extracts X X X X X X X X Extracts X X X X ..... ness income since assessee had systematically involved in the business of letting out industrial sheds with all facilities and carried out composite activity of constructing sheds and letting out for business purpose alone which was sole intention of assessee?" 2. We have heard Mr.E.I.Sanmathi, learned Counsel appearing for the appellants-Revenue. 3. The contention raised on behalf of the appellants-Revenue was that as the Assessing Officer and the appellate authority both found that the regular activity of the assessee was construction and letting out industrial sheds and the rental income derived from the industrial sheds could not be treated as the 'income from house property' and it can only be considered as 'income from business'. He ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essment Year 2007-08 dt.21.12.2010 in the assessee's own case, wherein the Department has assessed the rental income received from letting out of the assessee's properties as 'Income from House Property'. In this view of the matter from the facts on record it appears to be quite evident that when the intention of the assessee is to earn rental income from letting out of properties, then the same income ought to be assessed as income from house property and not as income from business. 6.3.2 In the case of Chugandas and Co. (supra), the Hon'ble Apex Court observed that "it must therefore be held that even if an item of income is earned in the course of business, it will not necessarily fall within the head 'Profit and Gains from Business' " ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal in the said case. 6.3.4 In the case of Shambhu Investments Pvt.Ltd. (supra), the Hon'ble Apex Court confirmed the decision of the Calcutta High Court, in the same case, which had held that if the intention of the assessee was to earn income by letting out of a property then such income has to be earned as 'Income from House Property.' 6.3.5 In the factual matrix of the case on hand, it is clear that the intention of the assessee is to earn rental income from letting out of the property and therefore the same rental income ought to be assessed as 'Income from House Property' and not as 'Income from Business'. In this context, we find that the decisions of the Hon'ble Apex Court and the Hon'ble High Court of Karnataka relied upon by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d stand of the department in respect of the very assessee for the subsequent assessment year is accepted by the Department itself, the Tribunal has rightly found that the income cannot be treated as the 'business income'. It further shows that the Tribunal has relied upon the decision of the Apex Court in case of CIT Vs. Chugandas & Co. reported at (55 ITR 17) (SC), the decision of Karnataka High Court in case of Commissioner of Income Tax Vs. Bhoopalam Commercial Complex & Industries (P) Ltd. reported at (2003) 262 ITR 517 as well as the decision of Calcutta High Court in case of Shambhu Investments Pvt. Ltd. reported at 263 ITR 143. 8. As such, the question for giving treatment to the income of the property of the assesee as that from 'i ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
