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2015 (4) TMI 192 - HC - Income TaxRegistration of firm under u/s 186 (1) cancelled - Genuity of firm questioned - same property belonging to husbands was surreptitiously transferred to their wives through the camouflage of a firm to evade tax - ITAT holding that a genuine firm was in existence - Held that:- Nothing has been brought before us to show that letting out immovable property on rent will never constitute a business and income derived from letting out immovable property i.e. rent would not constitute a business income at all. The learned counsel for Revenue could not disputes that a partnership firm may carry out business of leasing out property on rent and earn income therefrom as a business income. He also could not dispute that existence of firm as such is not doubted and the brood proposition is not correct. As proposition, it cannot be said that there would not be any business activity in leasing out a building and collecting rent therefrom so as to bring the profits within the ambit of income from business in profession. In the present case, the Tribunal as a last court of fact has recorded a specific finding in favour of assessee and in the absence of anything to show that the same is perverse or contrary to record or based on misreading, we do not find any reason to take a different view.Tribunal was justified in law in holding that the assessee firm is entitled to registration. - Decided in favour of assessee.
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