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2012 (9) TMI 328 - AT - Income TaxRental income from the property 'Income from house property' versus ‘Profits & Gains of Business or Profession’ or under the head ’Income from other sources’, as held by Revenue - Held that:- In the instant case, though assessee contended that assessee derived income from exploitation of commercial asset, however not even a whisper is made in the impugned order as to whether or not the assessee derived income from exploitation of property as a commercial asset or as an owner. Apparently, the issue has not been examined in proper perspective. Where income is derived from house property by the exercise of property rights properly so called, the income falls under the head 'income from property; however where house property is given on lease or licence basis for earning income therefrom, the true character of the income derived is income from property. The said character is not changed and the income does not become income from trade or business if the hiring is inclusive of certain additional services such as heating, cleaning, lighting or sanitation, which are relatively insignificant and only incidental to the use. A mere glance at the impugned order for the year under consideration, reveals that the order passed by the CIT(A) is cryptic and grossly violative of one of the facets of the rules of natural justice, namely, that every judicial/quasi- judicial body/authority must pass reasoned order, which should reflect application of mind by the concerned authority to the issues/points raised before it. ‘Decision’ does not merely mean the ‘conclusion’. It embraces within its fold the reasons forming basis for the conclusion. In view of the foregoing, especially when the CIT(A) have not passed a speaking order, matter is restored to file of CIT(A) to bring out clearly as to whether or not the assessee derived income from exploitation of property as a commercial asset or as a owner – Decided in favor of assessee for statistical purposes
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