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TMI Blog2020 (7) TMI 308X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the assessee s income from the said holiday homes under the business head than that claimed as income from other sources - PCIT s observations that the assessee could not demonstrate that the income from holiday homes as disclosed by it was in any manner whatsoever was examined during assessment; turns out to be factually incorrect since the AO had not only carried out necessary enquiries but also he changed the head of its income from other sources to business Hon ble Delhi high court in ITO vs. D.G. Housing Projects Ltd.[ 2012 (3) TMI 227 - DELHI HIGH COURT ] hold that the twin limbs of no enquiry or inadequate enquiry and an erroneous decision by the assessing authority stand on a different footing and the CIT cannot simply remand the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essment dated 03.06.2016 is restored as a necessary corollary. - Decided in favour of assessee. - Sh. P.M. Jagtap, Vice President And Sh. S.S. Godara, Judicial Member For the Appellant : Sh. Sanjay Bhattacharya, FCA. For the Respondent : Sh. Radhey Shyam, CIT. ORDER PER SH. S.S. GODARA, JUDICIAL MEMBER: This assessee s appeal for AY 2014-15 arises against the order dated 20.03.2019 passed by the Pr. Commissioner of Income Tax, Kolkata-12, Kolkata in M. No. PCIT-12/Kol/263/2018-19/ in proceedings u/s 263 of the Income tax Act, 1961 (in short the Act ). Heard both the parties. Case file(s) perused. 2. We advert to the relevant facts in the instant case. This assessee is a cooperative credit society. Apart from carrying out co-operative cred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to the permanent employees of CESC Ltd. It had income from the activity of providing credit facilities to its members and interest on deposit with the The West Bengal State Co- operative Bank Ltd. as well as income from interest on deposit with commercial bank. From the details available on the record it was observed that in the Income Expenditure Account, assessee had declared Gross receipt of ₹ 30,19,125/- under the head Income from Other Sources on account of maintenance of Holiday Homes and claimed expenses of ₹ 32,18,553/- as well as depreciation of Rs.l,49,456/-aggregating to Net Loss of ₹ 3,48,884/-. As per Balance Sheet, Fixed assets include the following Holiday Homes which were owned by the assessee. Maintenan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iled explanation, has directed the Assessing Officer to frame a fresh assessment going by the above extracted reasons. In other words, he has made it clear that the assessee's income derived from holiday homes under its ownership has to be assessed as income from house property and that from the other holiday homes is to be treated as income from other sources followed by the corresponding consequential computation. 5. After giving our thoughtful consideration to rival submission against and in support of the PCIT's impugned revised directions. We find no reason to sustain the PCIT s foregoing stand that the assessee's income derived from its holiday homes has to be bifurcated on ownership basis (supra). Learned CIT(DR) fails to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m holiday homes is not eligible for Section 80P(2)(i) deduction being not business income. It is crystal clear therefore that the head of assessee s income derived from its holiday homes i.e. whether it is income from house property as per the PCIT, business income going by the Assessing Officer in assessment and the CIT(A) and the residuary had of other sources in its computation; respectively, is purely a debatable issue. It thus could not be held that that the Assessing Officer s action sought to be revised as erroneous and causing prejudice to interest of the Revenue. Hon ble apex court s landmark decision in Malabar Industrial Co. Ltd. vs. CIT (2000) 243 ITR 83 (SC) holds that both these conditions need to simultaneously exist before S ..... X X X X Extracts X X X X X X X X Extracts X X X X
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