TMI Blog2012 (9) TMI 61X X X X Extracts X X X X X X X X Extracts X X X X ..... ble even under the head ‘income from business or profession’. Order of CIT(A) confirmed - Decided in favor of assessee Agricultural Income - Revenue contending the same to be 'Income from other sources' and denied exemption u/s 10(1) on ground that land was basically purchased for real estate activities and was given on lease to various parties - Held that:- Lands in question have been used for the purposes of agricultural operations and these lands are owned by the assessee company. It is also a matter of record that assessee is in receipt of lease/rent charges from the persons who have carried out the agricultural operations on the land. As such, the amounts received by the assessee are squarely covered under the definition of agricult ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... took place at the business premises of the assessee company on 28.12.05. The assessments for A/Ys 2000-01 to 2006-07 have already been completed by Your Honour's predecessors vide order dated 20.12.2007 u/s 153A read with section 153C and 143(3). In those years also the assessee company was in receipt of rental income from its complex known as "Sona Complex" . Whatever rental income was received in those respective years have duly been shown as income from house property and not as business income and the content ion of the assessee company has duly been accepted/assessed by Your Honour's predecessors for the years mentioned above. The position is the same in the year under consideration. Copy of the assessment order and computation for A/Y ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income was assessed as business income . 4. On appeal, it was mainly submit ted before ld. CIT(A) that there was a search in the premises of assessee and still rental income was assessed as income from house property only. Therefore, following the principle of consistency, the income should have been assessed on rental income. Moreover, no depreciation is being claimed, which clearly shows that income is from house property only. It was further submitted that in earlier years, certain loans were taken which were partly used for purchase of property as well as repayment of loans and the expenses were allowed accordingly. This year, no loan has been used for repayment of loans, therefore, interest was claimed against the income from house ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g wrong with the appellate impugned order and confirm the same. 8. In the second issue, after hearing both the parties we find that during assessment proceedings, AO noticed that assessee has declared agriculture income of Rs.4,93,350/-. Assessee was asked to justify the exemption. I t was stated vide letter dated 23.11.2009 as under : Regarding your Honour s query relating as to why agricultural income earned by the assessee company be not treated as normal income as against shown by the assessee company for rate purposes only/claimed as exempt, i t is submitted that whatever agricultural income has been shown, has shown on the basis of lease agreement entered into by the assessee company with agriculturists. The agricultural income i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arguments on the same. It is an undisputed fact that the lands in quest ion have been used for the purposes of agricultural operations and these lands are owned by the assessee company. I t is also a matter of record that assessee is in receipt of lease/rent charges from the persons who have carried out the agricultural operations on the land. As such, the amounts received by the assessee are squarely covered under the definition of agricultural income as defined in S.1(1A) (a). The said agricultural income is exempt in view of S.10(1) . In the circumstances, the AO s act ion in treating the same as taxable is against the law as detailed above. Therefore, the addition is deleted. 13. Ld. CIT(A) has given a finding that ultimately, lan ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
