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TMI Blog2019 (1) TMI 685X X X X Extracts X X X X X X X X Extracts X X X X ..... d Articles of Association permits letting and leasing of property which is the business of the appellant company. CIT(A) has relied upon the case decided titled as Chennai Properties & Investment Ltd. V. CIT (2015 (5) TMI 46 - SUPREME COURT). It also came into notice that in the earlier assessment order u/s 143(3) the revenue has accepted the rent as business income. The facts are not distinguishable at this stage also. There is no other distinguishable material on record to which it can be assumed that the income of the assessee on letting out the property falls within the purview of house property. Taking into account we are of the view that the finding of the CIT(A) is quite correct and in accordance with law which is not liable to b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case are that the assessee filed its return of income on 20.09.2012 declaring total income to the tune of ₹ 2,14,090/- claiming TDS credit to the tune of ₹ 21,60,000/-. The return was processed u/s 143(1) of the I.T. Act, 1961. Thereafter, the case was selected for scrutiny and notices u/s 143(2) 142(1) of the Act were issued and served upon the assessee. The assessee company was earlier engaged in the manufacturing business of engineering goods/components/spares. The manufacturing activity was discontinued since many years ago. At the present, assessee company has claimed that he was in the business of development of real estate. The assessee company was not found to the carried out any real estate development business a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 71,64,519/- 63,19,432/- Finance costs 3,69,908/- 13,13,361/- Depreciation and amortization 11,36,294- 16,62,591/- Other Expenses 1,32,25,334/- 2,08,07,146/- Total Expenses 2,18,96,055/- 3,01,02,530/- Profit before taxes 2,44,532/- (-)75,97,940/- 12. The AO has treated the rental income of ₹ 216,00,000/- as income under House Property and Interest on tax refund and dividend of ͅ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the licensor. It only means that the nature of payment is of rent and not that it has to be assessed as house property income. 15. While the office/factory building was to be demolished before development, the appellant to exploit the property temporarily let out the premises as per agreement of leave and license dated 17.04.2009 with Booker India Pvt. Ltd. (Booker). The purpose is not letting out of property but rather exploiting it commercially till the time approvals are received and property is demolished for the real estate project. The Memorandum and Articles of Association permits letting and leasing of property as the appellant company's business. In the case of Chennai Properties and Investments Ltd. vs CIT (2015) 277 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the assessee changed its business for development of real estate. The assessee converted its land into stock in trade w.e.f 07.08.2008. Schedule 8 on the balance-sheet shows ₹ 109,94,65,193/- as inventory of property. The assessee entered into the development agreement with Rajesh Real Estate Development P. Ltd. on 12.07.2010 for the development of the land. Earlier the assessee also agreed to alienate the larger portion of the land to Rajesh Estate and Nirman Limited by virtue of letter dated 20.12.2007. The assessee has also converted its land from industrial zone to residential use and necessary permission was also talen. All the activity speaks that the assessee was in the business activity. The assessee was maintaining the o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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