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2016 (2) TMI 234 - AT - Income TaxAddition under the head income from other sources as against income from business - CIT(A) with reference to the lease agreement and clauses thereon and held that Assessing Officer had correctly assessed the income from letting out of godowns for commercial space under the head ‘income from house property’ - Held that:- The appellant is not engaged in the business of leasing properties i.e. taking the properties on lease and again sub-leasing properties to various users. In the instant case the appellant has let out the property for a fixed consideration in the capacity of the owner of the property. The godowns which are rented by the appellant are not in the nature of plant and machinery. The manner of end-use of the property consisting of buildings or lands will not alter the assessability of income from house property to a business activity. The AO had correctly applied the ratio of the decision of the Hon'ble jurisdictional High Court in the case of Chennai Properties & Investments [2003 (3) TMI 28 - MADRAS High Court] and Shambu Investments [2003 (1) TMI 99 - SUPREME Court]. It is to be mentioned here that the various expenses claimed by the appellant in the P & L account are not laid out for purpose of earning the rental income. The various expenses claimed in the P & L account are in no way connected with the earning the rental income. Therefore, the considered view that the AO had correctly assessed the income from letting out the godowns or commercial space under the head "Income from house property" is acceptable. - Decided against assessee.
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