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TMI Blog2020 (9) TMI 732X X X X Extracts X X X X X X X X Extracts X X X X ..... lawful view after considering the details submitted by the assessee, we are of the opinion that the CIT was trying to substitute his view to the lawful view taken by the A.O. When two views are possible, and the A.O. has taken one view, we cannot say his order is erroneous as held in the case of CIT v. Max India Ltd. [2007 (11) TMI 12 - SUPREME COURT] . This is not a case where A.O. remained passive in the face of the return filed by the assessee but, on the other hand, had made further enquiries and passed the assessment after obtaining the reply of the assessee. We are of the opinion that in these circumstances, CIT fell in error in invoking provisions of section 263 of the Act, the twin conditions for invoking such powers having not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... operty in question is used as business asset and the exclusive business of the assessee company or firm is to earn income by way of rental or lease money, then such rental income can be treated only as the ?Business Income of the Assessee? and not as ? Income from House Property?. The Heads of Income is divided in various six heads, including ?Income from House Property?, which defines the specific source of earning such incomes. The income from house property is intended to be taxed under that head mainly if such income is earned out of idle property, which could earn the rental income by user thereof from the lessees. But, where the income from the same property in the form of lease rentals is the main source of business of the Asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, is a pointer towards that. 19. Since, in the present cases, it is not even in dispute that all the exclusive and main source of income of the Assessee was only the rentals and lease money received from the lessees in both the cases and the Assessing Authority took a different and contrary view mainly to deny the claim of depreciation out of such business income in the form of rentals, without assigning any proper and cogent reason. Merely because the lease income or rental income earned from the lessees, could be taxed as ?Income from House Property?, ignoring the fact that that such rentals were the only source of ? Business Income?; of the Assessee, the Authorities below have fallen into the error in holding that the income w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he exclusive or predominant business of the Assessee, the income earned by way of lease money or rentals by letting out of the property cannot be taxed under the Head ?Income from house property?, but can only be taxed under the Head ?Income from business income?. 22. In view of the aforesaid, where the facts of the cases are undisputed that both the Assessees in the present case carry on the business of earning the rental income, as per the Memorandum of Associations only and the fact is that they were not carrying on any other business, compels us to come to the conclusion that the present appeals of the Assessees are required to be allowed. The same are accordingly allowed and the question of law framed above is answered in favour o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... raj Motors Pvt. Ltd. The burden of the argument of the learned counsel for the Revenue, perhaps emanated from only the name of the company, forgetting that the main business activity of the company from its motor business had been diversified into developing a special kinds of property and earning lease rental income as its main business income. By no stretch of imagination, could a software park developed with the special facilities and amenities for software companies, be described or believed to be a property created for earning rental income as income from house property. The Tribunal not only relied upon an earlier decision of Madras High Court in the case of CIT v. Elnet Technologies Ltd. [(2012) 213 Taxman 129], but also having consi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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