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2016 (6) TMI 131 - AT - Income TaxIncome from lease rent - assessability of income - taxable under the head "Income from other sources" OR "Income from Business and Profession" - admission of additional evidence - Held that:- CIT(A) has taken note of the partnership deed executed between the parties. Merely because the document was not filed before the Assessing Officer in the original assessment proceedings but was filed before the CIT(A) during the course of appellate proceedings by way of additional evidence, the provisions of the Act provided that under certain circumstances, the CIT(A) can admit the same as evidence and decide the issue accordingly. Here the CIT(A) has decided the issue after referring to clauses of the partnership deed and accordingly, we hold that once the same has been considered by the CIT(A) elaborately, the same should have been admitted as additional evidence for deciding the issue in the present appeal for dispense of justice. Merely because a document was not filed before the Assessing Officer, the same cannot be rejected on surmises and in the totality of the above said facts and circumstances, we consider the issue in the light of deliberations of CIT(A) on the said so called additional evidence, since the powers of CIT(A) are co-terminus with the Assessing Officer. Accordingly, we hold that the income received by the assessee merits to be assessed in its hands as income from business and corollary to the same, brought forward losses on account of depreciation would form part of current depreciation in the hands of assessee and the same merits to be adjusted against income of the current year and in case of any balance, merits to be carried forward to the succeeding year. Lease rent received by the assessee from M/s. Deccan Bottling & Distilling Industries Ltd. - the said income is to be taxed as income from business and not income from other sources. - Decided in favour of assessee Disallowance under section 43B - Held that:- Since the income is assessed as income from business, relevant provisions of section 43B of the Act are attracted. The Assessing Officer is directed to verify the same and decide the issue.
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