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TMI Blog2023 (1) TMI 37X X X X Extracts X X X X X X X X Extracts X X X X ..... e are inclined to delete the addition under challenge. We may clarify that in case of change in facts and circumstances, this order shall not be taken as precedence - Assessee s appeal stands allowed. - ITA No. 3830/Del/2018 - - - Dated:- 30-12-2022 - SHRI SHAMIM YAHYA , ACCOUNTANT MEMBER AND SHRI NARENDER KUMAR CHOUDHRY , JUDICIAL MEMBER Assessee represented by : Dr. Rakesh Gupta , Adv. Sh. Somil Agarwal , Adv. Department represented by : Sh.Ajay Kumar Arora , Sr. DR ORDER PER N.K.CHOUDHRY , JM : The Assessee has preferred the instant appeal against the order dated 09.03.2018, passed by the Ld. Commissioner of Income tax (Appeals)-7, Noida (in short Ld. Commissioner ) u/s 250(6) of the Income Tax Act, 1961 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income from house property is to be considered under the head Income from Business and Profession . From the above facts it is summarized as under:- a) Main object of the Assessee company is Letting out as evident from MOA b) The Assessee company has not entered into separate agreement in respect of rent and maintenance. c) The Assessee company itself has stated that the Company had acquired lease hold land in A.Y 2000-01. The Company thereafter constructed building on such land which completed in A.Y 2004-05 and capitalized to Fixed assets. 3. On appeal, the learned Commissioner affirmed the said addition/disallowance by concluding as under: 3.2 I have carefully considered the assessment order and written submi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anagers, contractors and mortgagees with the possession of all kinds of land and buildings. 6. To construct, manage or deal in multi-storeyed buildings, residential and commercial on such terms and conditions as the company may deem fit and proper. 3.4. On a reference to the MoA of the appellant as above, it appears that one of the main objects of the appellant was as under: 2. To purchase or otherwise acquire lands, houses, buildings, sheds and other fixtures on lands and buildings and to let them out on lease, rent, contract or on any agreement. 3.5. In the case of East India Housing and Land Development Trust Ltd. the Supreme Court held that the income shall be treated as income from the house property, and re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eated as income from easiness and not as income from house property. 3.9. No doubt in the case of Sultan Brothers (P) Ltd., the Supreme Court had clarified that merely an entry in the object clause showing a particular object would not be the determinative factor to arrive at a conclusion whether the income is to be treated as business income. Therefore, such a question would depend upon the circumstances of each case and the Supreme Court is conscious of the aforesaid dicta laid down by the Constitution Bench decision. 3.10. In the present case, letting of the properties or renting of the same is the business of the appellant apart from other items. Therefore the AO correctly treated the income under the head income from busine ..... X X X X Extracts X X X X X X X X Extracts X X X X
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