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2020 (4) TMI 566 - AT - Income TaxRental income earned - Correct head of income - taxable under the head “Income from House Property” OR “Income from Business” - HELD THAT:- Referring to lease deeds available in the paper book, we find that the assessee has simply let out the properties owned by it for exploitation of his property by an owner and it is not doing any such activity based on which, it can be said that the letting out of the properties was the doing of a business. In very next year, the AO has also accepted the claim of the assessee in the scrutiny assessment although without any discussion but because of this fact that in the immediately preceding year, the claim of the assessee was not accepted by the AO, it cannot be said that the claim of the assessee was not noticed by the AO particularly when as against loss reported by the assessee under the head “Income from Business” and income declared by the assessee under the head ‘Income from Other Sources”, the assessee has declared much higher amount of income under the head “Income from House Property”, which was converted by the AO to “Income from Business” in the preceding year i.e. the present year. We respectfully follow the judgment rendered in the case of Raj Dadarkar & Associates vs. ACIT [2017 (5) TMI 586 - SUPREME COURT] and in turn follow the earlier judgment of Sultan Bros. Pvt. Ltd. [1963 (12) TMI 4 - SUPREME COURT] and decide the issue in favour of the assessee and hold that the rental income is taxable under the head “Income from House Property” as claimed by the assessee in the return of income. - Decided in favour of assessee.
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