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2015 (1) TMI 438 - HC - Income TaxDeduction under Section 32AB - income from the lease rent - Business income or income from other sources - Tribunal observed that Assessing Officer in error in rejecting the claim of the appellant for deduction U/s. 32AB in respect of the least rent. - Held that:- After the unit was set up, the assessee had admittedly never carried out the manufacturing activities for manufacturing of shoe polish. Further, The Tribunal rightly held that the facts of the case clearly indicated that the assessee wanted to exploit the asset as a commercial asset for commercial gain. It is further to be noted that leasing out had been done in the accounting year 1988-1989 and for the preceding assessment years, the assessee had shown the lease rent as business income, and the same had been accepted by the A.O. The Tribunal further held that the principle of res judicata was admittedly not applicable to the Income Tax Proceedings. - the income of the assessee is a business income. - Deduction u/s 32AB allowed - Decided against Revenue.
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