9911796707
TMI Blog2013 (12) TMI 591X X X X Extracts X X X X X X X X Extracts X X X X ..... rental income under the head "income from other sources". However, the Ld. CIT(A), by following the order of the Tribunal passed in the assessee's own case in I.T.A. No. 315/Coch/2006 relating to the assessment year 2003-04, reversed the order of the Assessing Officer and directed him to assess the lease rental income under the head "Income from business". 3. We have heard the rival contentions on this issue. The facts relating to the same are stated in brief. The assessee's plant was taken over by M/s. Apollo Tyres Ltd. on lease with effect from 01-05-1995 for a period of eight years as per the scheme approved by the Board of Industrial and Financial Reconstruction (BIFR). It is pertinent to note that, up to the assessment year 2003-04, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... agreement with Apollo Tyres Ltd and the during the period also, the lease rental agreement has been continuing. This shows clearly that the assessee company has no intention to restart its business. This may be because it could not carry out any manufacturing activity on its own. A verification of the Depreciation statement of the assessee for the year under consideration shows that the written down value (WDV) of the plant and machinery and moulds is NIL during the previous year relevant to AY under consideration. Thus, as explained above, the assessee did not carry out any manufacturing activity during the previous year relevant to AY 2006-07 also, as in the earlier years but leased out its plant and machinery to Apollo Tyres Ltd. In the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s the gap between the year of closure and the years under consideration at that point of time was very narrow. However, we are concerned with the assessment year 2007-08 and we have to consider the facts and circumstances prevailing as on 31-03-2007. By that date, about 12 years have passed and hence we are in agreement with Ld D.R that the assessee has not brought on record any material to show that it has intention to revive its business activities. Though the Ld. AR submitted that steps are being taken to revive the business, yet we are unable to accept his contention for want of supporting materials. Accordingly, in our view, the Ld. CIT(A) was not correct in placing reliance on the decision of the Tribunal without appreciating the fact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee did not get opportunity to contend about the deduction of eligible expenses as per the provisions of sec. 57 of the Act. Hence, we find merit in the plea made by the Ld A.R. Accordingly, we are of the view that the issue of deduction of expenses as per the provisions of sec. 57 and sec.58 of the Act needs fresh examination at the end of the AO. Accordingly, we set aside the order of the Ld. CIT(A) on this issue and confirm the assessment of lease rental income under the head "Income from other sources". However, as stated above, the matter relating to the deduction of expenses require fresh examination at the end of the AO in terms of sec. 57 & 58 of the Act and for the said limited purpose the impugned issue is set aside to the file of ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
