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2020 (2) TMI 458 - AT - Income TaxRevision u/s 263 - whether rental income of House property is assessable under the head “Income from House Property” or under the head “Income from business or profession”? - Stand of the ld PCIT is that rental income should be assessable under the head “Income from business or profession” whereas the stand of the assessee is that it should be assessable under the head “Income from House Property” - HELD THAT:- We note that the object clause, as contained in the Memorandum and Articles of association of company, would not be the conclusive factor. Matter has to be examined on the facts of each case as held by the Hon’ble Supreme Court in the case of Raj Dadarkar & Associates vs. ACIT [2017 (5) TMI 586 - SUPREME COURT] Assessing Officer has taken one of the possible views that the income should be assessable under the head ‘income from house property’, hence the order passed by the Assessing Officer u/s 143(3) dated 07.12.2016 is neither erroneous nor prejudicial to the interest of revenue. Since the order of the Assessing Officer cannot be held to be erroneous as well as prejudicial to the interest of the revenue, in the facts and circumstances narrated above, the usurpation of jurisdiction exercising revisional jurisdiction by the Principal CIT is “null” in the eyes of law and, therefore, we are inclined to quash the very assumption of jurisdiction to invoke revisional jurisdiction u/s 263 by the Principal CIT. Therefore, we quash the order of the Principal CIT dated 25.03.2019 being ab initio void. - Decided in favour of assessee
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