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2016 (4) TMI 120 - AT - Income TaxIncome on account of rent - "income from house property‟ OR "income from business‟ - Held that:- We find it appropriate to send this issue back to the file of the AO to examine this aspect properly. If this income has been assessed under the head „income from business‟ in all the past years, then, Revenue should not change the head of income unless the AO is able to bring out on record some material pointing out change in facts or law. For this purpose, the AO is obliged under the law to give a detailed reasoning in the assessment order in case he is not accepting the claim of the assessee. In the absence of the same, the AO is not permitted to change the head of income and should accept the claim of the assessee. The assessee is permitted to submit requisite details and documentary evidences, as may be required by the AO, or as may be considered appropriate by it, as per law and facts. The AO shall give adequate opportunity of hearing to the assessee before deciding this issue afresh. With these observations, this issue is sent back to the file of the AO. Disallowance of benefit of deduction u/s. 80IB of interest income, rental income and income from other sources - Held that:- This issue is squarely covered against the assessee with the judgement of the Hon‟ble Supreme Court in the case of Liberty India (2009 (8) TMI 63 - SUPREME COURT) wherein it has been held by the Hon‟ble Supreme Court that for granting benefit of deduction u/s. 80IB only the profit and gains which are derived from the industrial undertaking would be eligible to be considered. The ld. Counsel of the assessee was not able to show that the receipts on account of interest and rental income were in any manner derived from the industrial undertaking.
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