TMI Blog2004 (8) TMI 634X X X X Extracts X X X X X X X X Extracts X X X X ..... eads that the learned CIT(A) has erred in confirming assessment of income under the head "House Property" instead of "Business Income" without properly appreciating the assessee s submissions that the property has been given on leave and licence basis for a period of three years with a view to exploitation of business assets. It is prayed that the income be assessed under the head "business income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income of the building at Rs. 5 lakhs as "income from house property" and allowed deduction of Rs. 1,25,000 under section 24( i ). The learned CIT(A) confirmed the order. 3. The facts have not been disputed. The only factor which weighed against the assessee seems to be that the assessee had also disposed of its plant and machinery. The CIT(A) observed that the assessee/lessor or licensor had ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... machinery. Merely because, the plant and machinery have been disposed of it cannot be said that the assessee has stopped its business. Reliance has been placed on the following case law : ( i ) CIT v. Vikram Cotton Mills Ltd. [1988] 169 ITR 597 (SC) ( ii ) CIT v. Malabar Pioneer Hosiery (P.) Ltd. [1996] 221 ITR 117 (Ker.) ( iii ) CIT v. V.S.T. Motors (P.) Ltd. [1997] 226 ITR 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s engaged in manufacturing of goods had let out its shed. The finding of the Tribunal that rental income constituted income from business, was held by the Kerala High Court to be justified. Here again, the facts are not pari materia . There, the question of selling of plant and machinery was not involved. 7. In " VST Motors (P.) Ltd. " ( supra ), commission was paid by the assessee company to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fault can be found with such action. The fact remains that there was a lull in the market and therefore, the assessee had to let out its premises on leave and licence. 9. In the above facts, it cannot be said that the income in question was not business income. Hence, finding no merit in the order of the learned CIT(A), we hereby cancel the same and direct the Assessing Officer to tax at the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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