Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2013 (10) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (10) TMI 380 - HC - Income TaxClassification of head of Income - Whether the income received by the assessee by way of sub-lease of the Anna Salai property, collection of maintenance charges, A.C., hire charges etc., would be income from "business" or income from “house property” – Held that:- Reliance has been placed upon the judgment in the case of CIT vs. Ideal Garden Complex [2011 (9) TMI 731 - MADRAS HIGH COURT] - Assessee company has stopped its business activities long back and is not carrying out any other business activity and the assessee has parted with the commercial assets and confined solely to receive some income by virtue of ownership thereof by lease or otherwise and the act of leasing was the out come of the assessee's decision to get out of the business - Income receipt from letting out of the property was rightly assessed by the Assessing Officer as "income from house property" – Decided in favor of Assessee. Re-opening of assessment u/s 147 of the Income Tax Act – Reason to believe for the re-opening – Held that:- In the present case, based on the materials, which include the accounts, the Assessing Officer evidently has not scrutinised earlier, rightly the Assessing Officer invoked the jurisdiction under Section 147 of the I.T. Act. Under the Direct Tax Laws (Amendment) Act, 1987, Parliament not only deleted the words "reason to believe" but also inserted the word "opinion" in section 147 of the Act. However, on receipt of representations from the companies against omission of the words "reason to believe", Parliament reintroduced the said expression and deleted the word "opinion" on the ground that it would vest arbitrary powers in the Assessing Officer - Thus, in a case where there is no regular assessment and consequently no inquiry is held, proceedings in this case are initiated rightly so by the Assessing Officer under Section 147(a) of the I.T. Act – Decided in favor of Revenue.
|