TMI Blog2008 (12) TMI 331X X X X Extracts X X X X X X X X Extracts X X X X ..... al, the main business of the assessee was not renting of property, but of development and sale of property. Hence, the assessee could claim the head to be income from property instead of income from business. The appeal is dismissed. – Decision in favor of assessee – against the revenue. - 748 of 2008. - - - Dated:- 23-12-2008 - ADARSH KUMAR GOEL and L. N. MITTAL JJ. Yogesh Putney for the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me-tax Appellate Tribunal was right on ignoring the ratio of the Karnataka High Court in the case of Addl. CIT v. Hindustan Machine Tools Ltd. [1980] 121 ITR 798 and the Madhya Pradesh High Court in the case of CIT v. National News print and Paper Mills Ltd [1978] 114 ITR 388 where facts were similar to those in the present case and whereas the facts of the case Haryana Tourism Development Corpora ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er section 24 at 30 per cent. was claimed. The Assessing Officer wrongly mentioned the deduction claimed as depreciation and also in the grounds of appeal the claim on account of repairs of property had been mentioned as depreciation. During the course of hearing, questionnaire issued by the Assessing Officer dated July 14, 2005, was furnished which revealed that the Assessing Officer asked the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for considering the rental income of the assessee as a business income, moreover the main business of the assessee was to undertake the development of towns, cities, villages and other such areas, but the commercial properties for which there was no taker and public utilities like, Jhanjghar, Community centers were let out to tenants on fixed rent for fixed period, therefore, the income was shown ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment Trust Ltd. v. CIT [1961] 42 ITR 49. Therein, business of the assessee was to promote development and sale. However, the assessee also derived income from rent. It was held that the same could be treated to be income from property and not income from business. 5. In view of the finding of the Tribunal that the main business of the assessee was not to rent out the premises, we are unable to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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