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2021 (11) TMI 636 - HC - Income TaxCorrect head of income - Lease rent received - to be treated as business income or as income from other sources - Assessee was declared as a sick company under the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA). Thereafter, a scheme for rehabilitation and revival was prepared, which obtained the approval of the Board for Industrial and Financial Reconstruction (BIFR) on 17.04.1995. The scheme provided for an arrangement between M/s.Apollo Tyres Ltd.[ATL] and the assessee - HELD THAT:- We find that the assessee had never been an active participant of ATL. Though the revival was contemplated within a limited span of time, that did not happen, even though the net worth turned positive. There was no attempt to exploit the commercial assets of the company and instead the assessee merely renewed rental arrangement and received rent as a passive receipt. Therefore, we answer the first question in favour of the revenue and hold that for the assessment year 2004-05, the rental income received by the assessee from ATL ought to be treated as income under the head “income from other sources”.
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