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2006 (4) TMI 196 - AT - Income TaxCorrect head of income - Income from letting of the property - ''Income From House Property'' Or "Business" - HELD THAT:- In the present case, the subject property let out by the assessee-company was undisputedly owned by it and it was a case of bare letting of tenement and the subject hired out was not a complex one. It was thus a case of letting out of a property owned by the assessee simplicitor and not a case of exploitation of the property by way of complex commercial activity. The rental income earned from the said property thus was chargeable to tax under the head "Income from house property" and not under the head "Profits and gains of business or profession" as claimed by the assessee. Thus, we hold that the rental income received by the assessee in the year under consideration was assessable to tax under the head "Income from house property" and not under the head "Profits and gains of business". Accordingly, we answer the question referred to us in the negative, i.e., in favour of the Revenue and against the assessee. As regards the alternative contention of the learned counsel for the assessee that the expenses incurred in connection with the repairs and maintenance of the subject property held as stock-in-trade by the assessee be allowed under the head "Profits and gains of business" and that the resultant loss under the head be allowed to be adjusted against the income assessable under the head "Income from house property", we are of the view that this issue is beyond the scope and ambit of the question specifically referred to this Special Bench u/s 255(3). Even the assessee-company has raised this issue separately in the other grounds taken in its appeals filed before the Tribunal. It will therefore, be open to the assessee to raise this issue before the Division Bench which shall deal with the same in accordance with law. The matter will now go before the regular Bench for disposing of the appeals keeping in view our decision rendered hereinabove.
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