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2010 (5) TMI 506 - ITAT, MUMBAIBusiness income or Other sources - Business premises was let out to M/s. Sai Service Station Ltd. and M/s. Sai Automobile Sales & Services Pvt. Ltd. and as per the agreements entered into on 24-6-2002 royalty was payable to the assessee-company @ Rs.1,70,000/- per month from each of the above two companies and the period of agreement was 3 years from 24-6-2002 - Upon perusal of the agreements and other details AO observed that the so-called royalty income is assessable to tax as ‘income from other sources - Under the peculiar circumstances of the case, “the rule of consistency” or “res judicata” cannot be applied to the facts on hand and the issue has to be decided independently - Held that the income earned by the assessee is assessable to tax under the head “income from other sources” and not as “business income Deemed dividend u/s 2(22)(e) - receipt of loan of Rs. 11,10,000 - in view of decision of Hon’ble Bombay High Court in the case of Universal Medicare Private Ltd. (2010 -TMI - 76961 - BOMBAY HIGH COURT) issue decided in favor of assessee – In the result, appeal filed by the assessee partly allowed
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