Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (1) TMI 1440 - AT - Income TaxRental income - Business income or income from other sources - Held that:- The assessee has developed and prepared the premises as a fitness centre/gymnasium by installing the all requisite equipments, machines and other facilities - The primary purpose and intention of the assessee to lease out the assets comprising the premises as well as the equipments is to earn the income by exploiting the asset being earning apparatus - It is not a simple case of earning the rental income from letting out the premises - The Revenue has accepted the income from lease out the premises as business income for the assessment year 2006-07 to 2010-11 except the assessment year under consideration - When there is no change in the facts and circumstances then the principle of consistency has to be followed - As per the rule of consistency when the Revenue has accepted the claim of the assessee in all other years then treating the rental income in respect of the fitness centre is not justified - Decided in favour of assessee. Disallowance of municipal taxes - Held that:- If the amount has been paid on or before the due date of filing the return of income u/s 139, then the same has to be allowed u/s 43B - Decided in favour of assessee. Interest income - Held that:- The substantial income of the assessee is from the activity of advancing the loan and in the form of interest - This income has been offered by the assessee as business income which has been accepted by the Revenue since 2003-04 to 2011- 12 except the assessment year 2007-08 - When the Revenue has consistently accepted the interest income as business income of the assessee then in the absence of any change in the facts and circumstances a different view is not permissible for the assessment year under consideration - Decided in favour of assessee.
|