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2015 (10) TMI 2560 - AT - Income TaxDisallowance u/s 24(a) - treatment to rental income as ‘Income from house property’ instead of ‘Income from business and profession' - rental income earned from stock in trade - Held that:- More enquiry is required to be conducted by the AO to ascertain the true nature of assessee’s activities with a view to ascertain whether the letting was a business activity or was exploitation of property by the owner. In our view, for that purposes AO is required to make more enquiries like whether there are any other source of income besides giving the properties on rent or what is true intention of the assessee by letting the property or whether the properties were leased out interregnum period waiting actual the sale of the property with a view to mitigate the loss as would have been done by an ordinary property owner. We notice that the various portions of the property, like the ground floor, 1st floor, 6th floor and 7th floor were lying vacant as mentioned in the closing stock as on 31.3.2011. In our opinion, AO should also bear in mind the status of vacant floors in the property while deciding the issue. Thus we restore the matter to the file of AO to decide afresh after affording reasonable opportunity of being heard to the assessee.
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