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TMI Blog2025 (2) TMI 394X X X X Extracts X X X X X X X X Extracts X X X X ..... onvincing reasons for deviating from the view consistently being held, has substance.
Nothing has been brought on record by the A.O. or the ld DR before us to prove that there is any variation in the facts of the case as compared to the earlier or subsequent years wherein the rental income has been assessed to tax under the head House Property. We are therefore, of the considered view that since there is no change in the facts of the case, the rule of consistency applies in accordance with case of Radhaswami Satsang [1991 (11) TMI 2 - SUPREME COURT]
Thus, no infirmity in the well-reasoned order of the ld. CIT(A) holding that the rental income is to be taxed under 'Income from House Property". Decided against revenue. X X X X Extracts X X X X X X X X Extracts X X X X ..... ceedings, the Assessing Officer noticed that the amount of Rs. 12,13,92,238/-, represents the amount of rent from M/s Alstom India Ltd, accrued during the year but not included in the income declared by assessee in its return of income. The AO further disallowed claim of deduction u/s 24(a) of Rs. 4,75,55,130/- holding that the income offered to tax as income from house property was taxable as 'Business income'. 8. Aggrieved, the assessee preferred an appeal before the CIT(A), Meerut, who vide order dated 24.08.2020, decided both the issues in favour of the assessee company and deleted all the additions so made by the A.O. 9. Now the department has filed this appeal before us against the second issue i.e. charging of tax on rental income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come has been assessed to tax under the head House Property. Reliance was placed on the following judicial pronouncements.- a) Radhaswami Satsang vs. CIT (SC) 193 ITR 0321 b) CIT vs. Excel Industries Ltd. (SC) 358 ITR 0295 c) CIT (Exemptions) vs. Hamdard National Foundation (India) (Delhi HC) [443 ITR 0348] 14. The ld. counsel for the assessee further contended that the ld. CIT(A) has rightly reversed the order of the A.O. and held that the rental income is to be assessed under the head house property in view of no change in the facts of the case and the rule of consistency. Otherwise also the main business of the assessee is manufacturing and trading of carpets, and rental income is only a side activity. Hence, the rental income ear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Income from House Property. No change in facts as compared to earlier years has been brought on record by the A.O. and therefore I find substance in the submission of the appellant that there was no reason not to follow the rule of consistency by assessing the rental income of the appellant under the head income from house property during the year under appeal also. I have also observed that the clauses in the rent deed allowing use of Lift, parking space, common areas of the building and lessee right to get building repair, structural maintenance would not make the rental income of the assessee to be the income from business. As no business activity is carried by the assessee in providing the stated amenities which are already installed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... O: to assess the rental income under head Income from house property and to allow deduction under Sec 24(a) of IT Act. In the result, the above said grounds are allowed and the assessee gets relief of Rs. 4,75,55,130/." 18. Under the facts and circumstances as discussed above, we find that the main business of the assessee is manufacturing and trading of carpets, and rental income is only a side activity. We also find that the contention of the ld. counsel for the assessee that since the assessee has been offering the rent received to tax under the head house property since 2007, the rule of consistency has to be followed in the income tax proceedings unless there are compelling/convincing reasons for deviating from the view consistently b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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