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2005 (12) TMI 267 - ITAT RAJKOTGeneral Merchant and Warehousing and JCB Loader Hire Charges - whether the income from warehousing should be assessed as business income as returned by the assessee, or as income from house property as assessed by the Assessing Officer? - HELD THAT:- In the instant case, even though the customers making payment to the assessee had booked the expenditure in their books of account under the head 'Rental expenditure/payment' and deducted TDS thereon under section 194-I, yet the income so received is assessable in the assessee's hands as income from business 'and not' as income from rent or income from house property. As per our considered view for deciding the nature of income, no general principle can be laid down which is applicable to all the cases, these cases have to be decided on its own merits, facts and circumstances. In each case, what is to be seen is whether the asset is being exploited commercially by letting out or whether it is being let out for the purpose of enjoying the rent. The distinction between the two is narrow and one has to depend on certain facts peculiar to each case. Thus, in the instant case, the entire activity systematically undertaken by the assessee since years together is adventure in the nature of trade, therefore, liable to be assessed as 'business income' and not as 'income from house property'. We are, therefore, inclined to agree with the contentions of learned A.R., CA that pure and simple commercial assets like machinery, plant, tools, industrial assets and godowns having high business potential stands on a different footings from the assets like land and building. The hire charges income of such godowns has to be taxed under Part 'D' of Chapter IV of Income-tax Act, as "income from business" rather than income from house property. In the result, all the appeals of revenue are dismissed.
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