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TMI Blog2017 (6) TMI 390X X X X Extracts X X X X X X X X Extracts X X X X ..... No.4452/Mum/2013, ITA No.4454/Mum/2013, And ITA No.4034/Mum/2014 - - - Dated:- 31-5-2017 - SRI MAHAVIR SINGH, JM AND SRI N.K. PRADHAN, AM For The Assessee : Shri Hariom Tulsiyan, AR For The Revenue : Shri Pradeep Kumar Singh, DR ORDER PER MAHAVIR SINGH, JM: These appeals by the assessee are arising out of the different orders of CIT(A)-5, Mumbai, in appeal No. CIT(A)-5/DCIT-3(1)/IT 339 446/2011-12, IT/185/12-13/423/13-14 dated 14-02-2013, 20-03-2014. The Assessments were framed by DCIT Circle 3(1), ACIT Circle-3(1), Mumbai for the A.Ys. 2008-09, 2009-10, 2010-11 vide order dated 30-12-2010, 23-12-2011, 23-11-2012 u/s 143(3) of the Income Tax Act, 1961 (hereinafter the Act ). 2. The first common issue in all ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... business or profession and assessed under the same head. Whereas assessee declared the income from self-owned property situated at MBC Tower TTK road, Chennai as rental income under the head income from house property as against the same the AO assessed this rental income under the head profits or gains from business or profession. The assessee preferred the appeal before CIT(A). 4. The CIT(A) after considering the facts of the case, confirmed the action of the AO in assessing the same as business receipts by observing in Para 3.2 to 3.4 as under. - The facts of the case have been considered The appellant has shown rental income of ₹ 5,27,76,383/- in r/o the various premises (at MBC Towers, Chennai) given to various par ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... umstances, it is apparent that the appellant has bifurcated the composite amount partly as rental and partly as amenity charges. The law permits tax planning and not tax avoidance. If within the four corners of law the person arranges its affairs in such a way that its overall tax liability is reduced, there cannot be any embargo on such planning. If however, dubious means are adopted to reduce the incidence of tax by artificially inflating expenses or reducing income, it cannot be described as anything other than tax avoidance. When we consider the reality of the situation in the present place, it becomes abundantly manifest that the business receipts have been bifurcated as rental income (to be shown as income from House property and clai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessed the income under the head property and gains from business or profession instead of income from housing property. We find that consistently Revenue is accepted the income from this property i.e. MBC Tower TTK road, Chennai as income from house property. But suddenly, in these three assessment years, now before us the Revenue has changed the head of income from income from house property to income from profits or gains from business or profession without any valid reason. We find that now, Hon ble Supreme Court in the case of Raj Dadarkar Associates vs. ACIT [2017] 81 taxmann.com 193 (SC) has clearly held that in case the provisions of Section 22 are applicable the property is to be assessed as income from house property. 6. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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