TMI Blog2012 (9) TMI 982X X X X Extracts X X X X X X X X Extracts X X X X ..... for A.Y. 2007-08 and by way of this, the assessee filed two Cross Objections in C.O. Nos. 96/Ahd/2010 for A.Y. 2006-07 C.O. No.230/Ahd/2010 for A.Y. 2007-08. 2. The ground of Revenue s appeals as well as Assessee s C.O. is revolving around business income treated as income from House property by the A.O. in all the years. The factual matrix of the case is that the assessee had two sources of income during the years under consideration. The first income (amounts are different in different years) from operations basically received from three diamond firms for providing business accommodation in the property under ownership of company, the second income (amounts are different in different years) is from the sale of canteen coupons. The a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The amount received under JBA was towards not only use of infrastructure but also its operation and maintenance and for providing host of utilities and services. (ii) The appellant was carrying on the activity in an organized manner and on daily basis by employing a team of personnel. (iii) The appellant was running number of operational departments on daily basis like any business house such as Canteen, support, security etc. (iv) The appellant made acquisition of 2 companies through Amalgamation and Merger for development of the Infrastructure. (v) It had developed the infrastructure keeping in mind the requirements of Diamond Trading Co(DTC) applicable to its site holders factories as well as all the labour law regul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case of Shambhu Investment P Ltd (supra) wherein Hon ble Court after laid down law that what was to be seen was the intention of assessee. If the intention was to exploit property commercially, the resultant income must be assessed as business income. Thus, even applying ratio of Shambhu Investment (Supra) the income of the appellant is to be assessed as Business Income since the intention of the appellant is to exploit property commercially. The facts of the appellant are quite different from that of the case of Shambhu Investment and hence the findings to that extent are not applicable to case of appellant. Further, the case of the appellant is also covered by judgment of jurisdictional Hon ble Gujarat High Court given in the case of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as under: 4. We have considered rival submissions and perused the orders of the AO and the CIT(A). We have also perused the copy of the joint business agreement between the assessee and the Poonam Diamond, English transaction whereof has been filed in the compilation by the assessee. We find that the assessee has agreed to provide space for diamond business and also provided infrastructure facilities like electrical installation, canteens, house keeping, security etc. Clause-3 of the agreement provides certain amount payable to the assessee company as secured amount or Re.1/- per inward carat, whichever is higher. Thus, the amount payable to the assessee company was also depended on quantity of inward carat of diamonds. The assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
