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TMI Blog2012 (10) TMI 1144X X X X Extracts X X X X X X X X Extracts X X X X ..... for statistical purposes. Rental Income - Income from house property instead of business income - In the case of Shambhu Investment P. Ltd. v. CIT [ 2003 (1) TMI 99 - SC ORDER] , held that income derived from letting out of the property should be assessed as income from house property. The Ld. Counsel s contention that in the earlier year, the rental income has been taxed under the head Income from House property and therefore the same should be followed as per the rule of consistency cannot be accepted for the simple reason that the rule of consistency envisages that if there is only one view on the given set of facts, then the same view should be taken year after year. However, In the instant case, in the earlier year, the Reve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee is allowed for statistical purposes. 3. Ground No. 3 of both the appeals relate to application of Section 115JB on the disallowances made u/s. 14A of the Act. As the issues involved in respect of disallowances u/s. 14A of the Act has been restored back to the files of AO as per our decision in ground No. 1, this issue is also restored back to the file of the AO to be decided in the light of the outcome of ground No. 1. 4. Grievance in ground No. 2 in both the appeals relate to the treatment of rental income of ₹ 36,76,000/- as income from house property instead of business income. 5. During the course of the assessment proceedings, the Assessing Officer found that the assessee company has let out its office building at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the assessee, the Ld. CIT(A) held as follows: I have carefully considered the facts of the case. The appellant let out its office building and received the rental income. In my considered view, the appellant was not engaged in any systematic activity of letting out of properties and therefore, it could not be said that the appellant let out the property in the course of its business. It was immaterial that the premises subject matter of letting out, was fit for use by tenant as office premises or residential premises. In the hands of appellant, the property was not a business asset, as the same was not being used for the purposes of business carried on by the appellant. There was no commercial exploitation of the property by the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the earlier year, the rental income has been taxed under the head Income from House property and therefore the same should be followed as per the rule of consistency cannot be accepted for the simple reason that the rule of consistency envisages that if there is only one view on the given set of facts, then the same view should be taken year after year. However, in the instant case, in the earlier year, the Revenue authorities may have taken a wrong view in-consistent with the ratio laid down by the Hon ble Supreme Court in the case of Shambhu Investment P. Ltd. v. CIT (supra), in our considerate view, the law laid down by the Hon ble Supreme Court is to be followed. Therefore, we do not find any merit in the arguments of the assessee, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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