TMI Blog2010 (12) TMI 547X X X X Extracts X X X X X X X X Extracts X X X X ..... nd ward staff, electricity, water and other common amenities. Income derived by the assessees from the said office premises was offered for taxation as a business income and the same was assessed accordingly by the A.O - Appeal of the revenue are allowed - ITA No.67/Vizag/2007, ITA No.153/Vizag/2008, ITA No.522/Vizag/2009 - - - Dated:- 7-12-2010 - Sunil Kumar Yadav, B.R. Baskaran, JJ. T.L. Peter, DR for the Appellant ULN Sudhakar, Adv. for the Respondent ORDER Per: S.K. Yadav: These appeals are preferred by the revenue against the respective orders of the CIT(A) on common grounds that CIT(A) has erred in treating the rental receipts on buildings as income from business instead of income from house property, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... missions that each property was let out to a single tenant. In some case it was let out for approximately 10 years and some were let out for 3 years subject to the renewal of tenancy. In fact total number of properties are 8 and some of them were let out to one tenant as per the assessee. Therefore, it is a clear case where rental income is to be assessed as an income from house property. He has placed a strong reliance upon the judgement of the apex court in the case of Shambhu Investment (P) Ltd. vs. CIT 263 ITR 143 (SC) and the judgement of the Calcutta High Court in the said case reported at 249 ITR 47 in which the facts and findings are explicitly clear. 5. The Ld. D.R. further contended that CIT(A) has not examined the issue in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the apex court. The judgement of the High Court in the case of Shambhu Investment (supra) is reported at pg.249 ITR 47. The facts of that case are that assessee owned a building at Raheja Chambers, Nariman Point, Mumbai. The said premises has been furnished by the assessee and has been let out to various persons/firms/organizations with all furnirue, fixture and light, Air Conditioners for being used as a "table space". The said assessee under the agreement with those occupiers are to provide service like watch and ward staff, electricity, water and other common amenities. Income derived by the assessees from the said office premises was offered for taxation as a business income and the same was assessed accordingly by the A.O. The CIT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice at a monthly rent payable month by month by the respective occupants. Services rendered to the various occupants according to the said agreement are not separately charged and the monthly rent payable is inclusive of all charges to the assessee. A portion of the said property is used by the assessee himself for his own business purpose. The rest of the said property has been let out to the various occupiers. It further appears that the assessee had already recovered a sum of Rs.4,25,000/- as and by way of security free advance from three occupants. Hence, the entire cost of the property let out to those occupiers have already been recovered as an by way of interest-free advance by the assessee. Hence, it cannot be said that the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om the said property is income from property and should be assessed as such. In fact there was a relationship of landlord and tenant between assessee and persons who hired office accommodation - Sultan Bros (P) Ltd. vs. CIT (1964) 51 ITR 353 (SC): TC 41R. 500 applied." 7. This view of the Hon'ble High Court has been approved by the apex court, therefore, the nature of rental income from house property is to be examined in the light of surrounding circumstances and the intention of the assessees at the time of letting out of the property. 8. Turning to the facts of the case, we find that assessee has constructed its properties at various places and were let out to different tenants for a longer period. Therefore, there is no iota of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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