Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2012 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (12) TMI 566 - ITAT MUMBAINature of Income – Whether the royalty income has to be considered as business income or as income from other sources - Assessee had handed over its Hotel, management and control on royalty basis treat it as business income – AO held that the royalty was nothing but payment received by the assessee on letting out of the hotel premises, treat as income from other sources - Held that:- It is a case of commercial exploitation of the assets owned by the assessee. Moreover, we also note that both in the earlier years and subsequent years the department had accepted the income as business income and, therefore, the doctrine of consistency is also in favour of the assessee. Appeal decides in favour of assessee Addition on account of cash deposit in bank u/s 68 – Assessee contended that cash deposit being money deposit by partner towards capital – AO’s ground was that there is time gap between cash withdrawal from partners bank account and deposit in assessee account – Held that:- As the introducing partner is doing his own business also and is regularly assessed to tax and cash withdrawals as well as introduction of cash in the firm are reflected in his accounts about which no dispute has been raised. Therefore, merely on the ground that there was time lag between the cash withdrawals and the deposits, addition cannot be justified as there is no legal bar on a person keeping money in cash. There is also no material placed on record to show that the cash withdrawals by partner had been used for some other purpose and were not available for cash deposits in the bank account of the firm. Appeal decides in favour of assessee Addition on account of cash deposit in current account u/s 68 – Assessee had handed over its hotel business on royalty basis – Said account in the name of hotel and hold by such another person who manage the control of hotel – Held that:- Such bank account had been duly disclosed in the balance sheet of Hotel and maintained separate P&L Account and Balance sheet for Hotel which he was running as per conducting agreement on payment, of royalty. Therefore no justification of such addition by AO. Appeal decides in favour of assessee
|