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2011 (5) TMI 975 - ITAT BANGALOREIncome from lease rentals under the head 'business' - The income shown by the assessee as 'income from business' was, treated by the AOs as 'income from house property' and 'Other Sources' - HELD THAT:- It was a fact that the assessee had not merely let-out its buildings for rent, but also carried on a complex commercial activity of setting up a software technology park in which various amenities and fit-outs have been provided. Following the ruling of highest judiciary in the case of CIT, COMMISSIONER OF INCOME-TAX, BOMBAY CITY I VERSUS NATIONAL STORAGE PRIVATE LIMITED [1967 (4) TMI 16 - SUPREME COURT], where it was held that "In our view, the High Court was right in holding that the assessee was carrying on an adventure or concern in the nature of trade. The assessee not only constructed vaults of special design and special doors and electric fittings, but it also rendered other services to the vault-holders." Further, an identical issue to that of the present one had cropped up before the earlier Hon'ble Bangalore Bench in the case of GLOBAL TECH PARK (P) LIMITED. VERSUS ASSISTANT COMMISSIONER OF INCOME-TAX. [2008 (6) TMI 313 - ITAT BANGALORE-A], where it was held that "the activity was done by the assessee as a business venture and was in accordance with the main object of the company. He assessee is providing ward and watch, maintenance of common area,maintenance of drainage etc., This clearly establishes that the entire activity is in organized manner to earn profit out of investment made by the assessee as a commercial venture. Therefore arrived at a conclusion that the rental receipts of the assessee is to be assessed as 'business income'" In conformity with the finding of the earlier Bench as well as ruling of the Hon'ble Apex Court, we are of the considered view that the Ld. CIT (A) was justified in arriving at such a conclusion. It is ordered accordingly. STCG on Sale of Land to Sister Concern - CIT (A) deleted the addition made on account of STCG on sale of the land to the assessee's sister concern - HELD THAT:- It is an undisputed fact that the assessee had parted with a piece of land to its sister concern for a sale consideration which, according to the assessee, was more than the guideline rate prescribed by the State Government. Revenue had not brought any credible documentary evidence to even remotely suggest that the assessee had, in fact, attempted to suppress the sale consideration on this transactions. In view of the above facts, there was no justification on the part of the AO to bring to tax STCG without any adequacy of documentary evidence on this score. It is ordered accordingly.
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