9911796707
TMI Blog2012 (3) TMI 82X X X X Extracts X X X X X X X X Extracts X X X X ..... 15,51,613/- (ii) Signage rent Rs. 7,98,000/- (iii) Parking rent Rs. 24,50,237/- (iv) Lease rent Rs. 18,48,350/- (v) Terrace rent Rs. 1,00,000/- (vi) License fees Rs. 12,29,000/- (vii) License fee Rs. 2,29,961/- Rs. 82,07,161/- Assessee also claimed deduction u/s 24(1) of Rs. 24,62,148/-. The Assessing Officer took a view that out of the total income of Rs. 82,07,161/- declared under the head "income from house property", the amount of Rs. 48,07,198/- received consisting of signage rent of Rs. 7,98,000/-, parking rent of Rs. 24,50,237/-, terrace rent of Rs. 1,00,000/- and license fees of Rs. 12,29,000/- is to be taxed under the head "profits or gains of business". The CIT (A) held that the income should b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rty and to allow consequential rebate u/s. 24(1) of the Income Tax Act, 1961. 4. That the orders of the lower authorities are not justified on facts and same are bad in law." Thus, the dispute in the appeal involved is only regarding the taxability under the head Income in respect of income from license fee and parking rent. Assessee claims it as income under the head income from house property and CIT (A) held it as income from other sources. 4. While pleading on behalf of the assessee, the learned AR submitted that assessee is engaged in the business of real estate development and the income has been earned by letting out its properties to various persons. Ld. AR also pleaded that the Assessing Officer took a view that only ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce does not depend upon the nomenclature but on the content of the agreement. The scope of deduction u/s 194I has been clarified by Board Circular No.715 dated 08.08.1995. As per the Circular, if a person has taken a particular space on rent and thereafter sub-lets the same fully or in part for putting up a hoarding, he should be liable to TDS u/s 194I and not u/s 194C. From these circulars and clarifications, it is well established that the assessee has rightly offered the income received from letting out the space, etc. etc. under the head income from property and not under the head business or profession and income from other sources as held by the CIT (A). The learned AR also submitted that department is accepting the income under the h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... petuated. Thirdly, the reliance of the assessee that the TDS had been deducted as per the provisions of section 194I which are applicable to the TDS on rent is also not of a ground on which correct head of the income can be determined. The provisions of tax deducted at source are procedural in nature and these are meant for collection of taxes on the basis of principle "as you earn as you pay". The income to be assessed under the head "Income from house property" under section 22 of the Income-tax Act is the income relate to building or land or land appurtenant thereto of which the assessee is the owner. Such income is chargeable under the head income from house property. Section 23 lays down the ways of calculation of annual value of such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oes not exceed [one hundred and eighty thousand rupees : Provided further that an individual or a Hindu undivided family, whose total sales, gross receipts or turnover from the business or profession carried on by him exceed the monetary limits specified under clause (a) or clause (b) of section 44AB during the financial year immediately preceding the financial year in which such income by way of rent is credited or paid, shall be liable to deduct income-tax under this section. Explanation.-For the purposes of this section,- (i) "rent" means any payment, by whatever name called, under any lease, sub-lease, tenancy or any other agreement or arrangement for the use of (either separately or together) any,- (a) land; or (b)&nbs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er sources" ** ** ** (ii) income from machinery, plant or furniture belonging to the assessee and let on hire, if the income is not chargeable to income-tax under the head "Profits and gains of business or profession"; (iii) where an assessee lets on hire machinery, plant or furniture belonging to him and also buildings, and the letting of the buildings is inseparable from the letting of the said machinery, plant or furniture, the income from such letting, if it is not chargeable to income-tax under the head "Profits and gains of business or profession". The provisions of Section 56 of the Income-tax Act for taxing income from other sources are inclusive. Certain incomes specify in section 56(2) are without prejudice to the ge ..... X X X X Extracts X X X X X X X X Extracts X X X X
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