Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (10) TMI 1419 - AT - Income TaxCorrect head of income - rental income from Operating Family Entertainment Center cum Mall and Maintenance Charges - "Income from House Property " OR "Profit and Gains from Business or Profession " - Following the stand of the assessing authorities in the past years of A.Y.2008-09 to 2011-12, AO assessed the said income under the head ‘Income from House Property as against assessee’s claim for treating the same as 'business income' Held that:- In the assessment order, the AO was made aware of the decision of the Tribunal in the assessee’s own case wherein such receipts have been held to be taxable as business income. The Assessing Officer noticed that the decision of the Tribunal has not been accepted by the Department and its appeal filed before the Hon’ble Bombay High Court u/s.260A of the Act was pending. For the said reasons, he has not followed the decision of the Tribunal for earlier years. On the contrary, the CIT(A) followed the decision of the Tribunal and allowed the claim of the assessee for treating such incomes as business income. The Hon’ble Bombay High Court in its order [2017 (7) TMI 779 - BOMBAY HIGH COURT] has upheld the stand of the assessee that such incomes are liable to be assessed as business income. Disallowance of interest paid on loan availed by the assessee from HDFC in respect to a property located at Chandigarh - Held that:- CIT(A) allowed claim of the assessee by noting that the income from lease / rentals was assessed as business income and therefore, the interest expenditure on loans availed from HDFC was an allowable expenditure. On this aspect also, we found no merit in the appeal of the Revenue in as much as it is consequential to the upholding of assessee’s stand of the income from lease / rentals being liable to be assessed as business income. - Appeal of the Revenue is dismissed.
|