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2022 (8) TMI 624 - AT - Income TaxCorrect head of income - rental income earned by the assessee - assessable as ‘income from house property or ‘income from other sources’ claimed by the assessee - HELD THAT:- It is not in dispute that in preceding years the assessee has been claiming that the rental income earned by it from let out building space along with inbuilt infrastructure and other amenities is taxable as income from other sources and not as income from house property. The Revenue has been rejecting the assessee’s claim on the flimsy ground that claim has not been made in the returns but the claim is made during the course of assessment proceedings. With a view to satisfy the Revenue and to overcome the above disability, the assessee after having filed the original return for AY 2013-14 filed revised return claiming therein that the rental income is assessable under the head ‘income from other sources’. Adopting the reasons given in earlier years, analyzing the nature of lease agreement, holding that the assessee is not receiving composite rent as recommended by the Hon’ble Supreme Court in Sultan Brothers Pvt. Ltd. [1963 (12) TMI 4 - SUPREME COURT] and that the lease deed is between related parties, the Ld. AO made the impugned disallowance which is confirmed by the Hon’ble DRP. Testing the facts of the assessee’s case on the touchstone of the various quoted decisions Tribunal recorded its unequivocal finding that the lease deed under consideration was composite one and that it answered the description under section 56(2)(iii) of the Act. Another objection of the Revenue that it is related party transaction has also been rejected by the Tribunal by saying that no adverse view has been taken in determination of ALP with AE by the Ld. TPO nor provisions of Section 40A(2) have ever been invoked. Admittedly, as Ld. AO says in para 4.3 of his order, in AY 2013-14 [2021 (6) TMI 538 - ITAT DELHI] also the facts of the case are similar to that of the earlier years. On such admitted fact situation, the co-ordinate benches of the Tribunal have decided this issue in earlier years as also in subsequent years in favour of the assessee. Therefore, there is no reason for us to deviate from the same in the absence of any fresh adverse material in the records. Accordingly the modified ground No.1, 2.1 and 2.2 are decided in favour of the assessee with the direction to the Ld. AO to follow the decision of the Hon’ble Delhi High Court in Jay Metals [2017 (7) TMI 618 - DELHI HIGH COURT] in respect of the assessee’s claim of expenses and depreciation under section 57 of the Act extracted by the Tribunal in para 22 of its order [2021 (1) TMI 537 - DELHI HIGH COURT] for AY 2011-12 and 2012-13. We order accordingly.
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