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TMI Blog2017 (3) TMI 1320X X X X Extracts X X X X X X X X Extracts X X X X ..... e from business. So far as the income received by virtue of another agreement i.e., Agreement for Hire of Amenities, it can only be called to be business income. Therefore, we are partly modifying the order of the CIT(A) and direct the Assessing Officer to recompute the income from house property as well as the business income of the assessee for providing certain amenities in terms indicated above. - ITA No. 974/Bang/2016, ITA No. 975/Bang/2016 - - - Dated:- 24-3-2017 - Shri Sunil Kumar Yadav, Judicial Member And Shri Inturi Rama Rao, Accountant Member Assessee by : Shri. V. Srinivasan, Advocate Revenue by : Shri. M. K. Biju, JCIT ORDER Per Sunil Kumar Yadav, Judicial Member These appeals are preferred by the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se. 3. Without prejudice to the right to seek waiver with the Hon'ble CCIT/DG, the appellant denies itself liable to be charged to interest u/s 234-B and 234-C of the Act, which under the facts and in the circumstances of the appellant's case and the levy deserves to be cancelled. 4. For the above and other grounds that may be urged at the time of hearing of the appeal, your appellant humbly prays that the appeal may be allowed and Justice rendered and the appellant may be awarded costs in prosecuting the appeal and also order for the refund of the institution fees as part of the costs. 3. Though various grounds are raised in these appeals, but the sole ground involved, relate to the nature of receipt received on l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntion that the amount of consideration received from its tenants would be its business income. 6. The learned DR on the other hand submitted that from the Leave and License Agreement, it is not clear as to what consideration was received on account of providing certain amenities, envisaged in para 26 of the agreement. Therefore, the entire consideration received by the assessee should be treated as income from house property, as laid down in the judgment of jurisdictional High court in the case of CIT Vs. S. Mohan Kumar (Supra). 7. Having carefully examined the order of lower authorities, in the light of judgment referred to by the parties, we find that the assessee has let out the property to its tenant M/s. ICICI Prudential Life In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he judgment as under: Answering the said question, they held the rent from the building will be computed separately from the income from the furniture and fixtures and in the case of rent from the building the appellant- will be entitled to the allowances mentioned in subsection (4) of Section 12 and in the case of income from the furniture and fixtures, to those mentioned in sub-section (3), and that no part of the income can be assessed under Section 9 or under Section 10. Therefore, in substance it was held the income falls under the heading of income from other sources and not income from business. Therefore, the Supreme Court did not go into the question whether income from the furniture and fixtures would fall under the income fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rty' it should be the income which represents the annual value of property consisting of any building or lands appurtenant thereto of which the assessee is the owner and only such income shall be chargeable to income tax under the head 'income from house property.' When Section 56(2)(iii) makes it explicitly clear that the income from machinery or fixture belonging to the assessee and let out on hire, if is not chargeable under the heading of 'profits and gains of business or profession', then it has to be charged to income tax under the heading 'income from other sources.' If the aforesaid income is inseparable from letting out the said plant machinery other than the income of such letting out cannot if it is no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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