9911796707
TMI Blog2018 (5) TMI 1154X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Income Tax Act,1961. The reasons assigned by him for doing the same are wrong and insufficient. Provisions of the act ought to have been properly construed before doing the same. Regard being had to the fact and circumstances of the case, the said Order u/s 263 ought not to have been passed. 2. The learned Commissioner of income Tax has erred in directing the Assessing officer to assess the Composite Activity of Income from Sub-Letting and from maintaining the Guest House in the property known as 'Kailash Bunglow' as Income from House Property instead of assessing under the Head Income from Business and Profession. The learned Commissioner of Income Tax has failed to appreciate the fact that the same has been consistently declared ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ermining total income at Rs. 7.53 Lac as against 'Nil' return filed by the assessee on 30/09/2009. During assessment proceedings, it was noted that the assessee offered rental income from various House Properties viz. three office premises situated at La Bella Co-op Hsg Society Ltd. and one bungalow situated at Kailash Chakala taken on lease from one of its directors. This rental income was being reflected by the assessee for the past several years. As evident from the quantum assessment order, this rental income was offered by the assessee as Business Income which has been accepted by the revenue in quantum assessment. 3. Subsequently, the said assessment order was subjected to exercise of revisional jurisdiction u/s 263 by Ld. CIT vide s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the revenue. 5. We have carefully heard the rival contentions and perused relevant material on record. From the perusal of documents placed before us, it is noted that Ld. AO, during assessment proceedings, by way of notice u/s 142(1) dated 23/08/2011, inter-alia, raised a specific query as to why the rental income should not be taxed under the head Income from House Property. In reply dated 08/11/211, the assessee has furnished details thereof and justified the assessment thereof as 'Business Income' by way of note which is extracted below:- Note on Rental Income should not to be taxed under the head "Income Form House Property" The Assessee is deriving Rental Income from the following Parties-(Rs.) (A) Axiom Optimals Pvt.Ltd ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with due application of mind, accepted the stand of the assessee and took one of the possible view in the matter and assessed the rental income as Business Income. This being the case, the order could not be said to be erroneous or prejudicial to the interest of the revenue so as to justify invocation of proceedings u/s 263. The action of Ld. AO, as aforesaid, may be prejudicial to the revenue but the same could not be termed as erroneous since the view taken by him was one of the possible view with due application of mind. Therefore, the prime twin conditions viz. erroneous and prejudicial to the interest of the revenue, in our opinion, have remained unfulfilled and therefore, invocation of proceeding u/s 263 was not justified. Hence, we h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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