Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

M/s Jagdamba Sahakari Sakhar Karkhana Ltd. Versus The Commissioner of Income Tax-I, Pune

2015 (11) TMI 863 - ITAT PUNE

Revision u/s 263 - as per CIT(A) action of the AO in summarily accepting the lease rent as ‘business income’ as offered by the Assessee is thus vitiated by non application of mind - Held that:- We concur with the view of the Ld. Commissioner that the terms of the Lease Agreement would show that assessee is no way involved in the manufacturing activity. The assessee is holding the factory premises and industrial unit in the capacity of lessor alone. The terms of the lease agreement does not throw .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ring activities which tantamount to implicit admission that no re-commencement of business activity has taken place. There appears to be no rationale or intelligible nexus between the plea of the Assessee and the fact situation. In the totality of situation viz. stipulations in lease deed revealing the continuance of business by the lessee by exploiting the business set-up of the lessor in exclusion to the lessor, passive conduct over fairly long period of 10 years or so, stepping in of liquidat .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

of revenue without anything further.

The Assessee has set off current year income of ₹ 2.68 crores approx against the unabsorbed business losses of the earlier years and rest has been carried forward on the premise that the lease rent continues to be in the nature of the business income since the act of let out is only temporary and therefore continue to retain the colour of ‘business’. Once it is found that the premise of treating the lease rent as ‘business’ is factually tenou .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

account as well as estimated computation under different heads as noted in para 16 supra. The business income of the magnitude of ₹ 2.68 cr. gets converted in loss of 32.35 lacs odd under the narrow and disadvantaged head of ‘income from other sources’ is perplexing and intriguing. Notwithstanding, the present act of accepting the income as business income will continue to grant the assessee, the right to carry forward and set off. This is also prejudicial to the revenues’ interest by its .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e-tax Act, 1961 (in short the Act ). 2. The assessee has raised the following grounds of appeal :- 1. The ld. CIT erred in setting aside the assessment order made u/s 143(3), after proper enquiries and not without any application of mind and the order made u/s 263 its bad in law and deserve to be cancelled. 2. The ld. CIT erred in setting aside the assessment order without providing that the said order was erroneous in so far as it was prejudicial to the interest of revenue. Therefore, the revis .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

hat expenses on salary and wages and administrative expenses were wrongly allowed without appreciating that these expenses were small and incurred on day to day activity of the appellant. 7. The ld. CIT grossly erred in exercising power u/s 263 though the assessment order was not erroneous and prejudicial to the interest of revenue and the issues considered by him were highly debatable and hence not within the purview of section 263 of the Act. 8. The above Grounds of Appeal are without prejudic .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

extent of business income declared i.e. ₹ 2,68,64,699/- and accordingly the total income was declared at NIL. The return of income was subjected to scrutiny under section 143(3) of the Act and the Assessing Officer completed the scrutiny assessment vide order dated 19.11.2010. In the scrutiny assessment, the returned income was accepted in toto. On subsequent examination of records in supervisonary jurisdiction, the Ld. Commissioner noticed that gross income received by the assessee durin .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

tire factory premises and industrial unit to M/s Natural Sugar & Allied Industries Ltd.. In-fact, it had not carried out any business of its own even in the preceding 5 years. In the light of aforesaid facts, the Ld. Commissioner observed that the assessee was not justified in showing the rental income and other income under the head business income . He was of the prima-facie view that such income ought to have been appropriately shown under the head income from other sources or income from .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

t forward business losses did not engage the attention of the Assessing Officer in any manner. No query whatsoever was raised in this regard. The Ld. Commissioner further observed that on examination of records, it was seen that despite not having any business activity, the assessee had claimed several expenses viz. salary and wages, administrative expenses, interest, depreciation, etc. which were prima-facie not admissible. The expenses were routinely allowed without any application of mind. In .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

was considered to be erroneous in so far as it is prejudicial to the interest of the Revenue by the Commissioner. Accordingly, the notice under section 263 of the Act was issued to the assessee on 14.03.2013 calling upon it to show-cause as to why the impugned assessment order should not be revised. 5. The relevant paras of show cause notice under section 263 of the Act issued to the Assessee are reproduced hereinbelow for convenience :- 3. It is seen from records that you had stopped manufactur .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

tivities altogether and were only to receive monthly lease rent from the lessee. The monthly lease rent/ hire charges were fixed on the basis of per metric ton (MT) of sugar-cane to be crushed during every succeeding crushing seasons. Consequent upon the lease, you ceased to have any income from business and your only income hereinafter consisted of lease rent income, interest receipts and other income. 3.1 Prima-facie, when there is discontinuance of business and complete stoppage of business a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

58 relating to other sources) could be claimed and allowed as deduction. Further, in view of stoppage of business resulting in absence of any business income, the prior years' unabsorbed business losses were not eligible to be brought forward and set off against the current year's nonbusiness income. 3.2 However, in the Return of Income filed for this assessment year, you had claimed several expenses as deduction. Most such expenses, claimed under the sub-heads "Salary and wages&qu .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

8377; 2,84,95,000/- claimed under the sub-head "administrative expenses". Nothing had been furnished by you to show that any part thereof had been incurred for earning the interest income or any other income. Similarly, in your Return of Income you had brought forward and set off earlier year's business losses of ₹ 2,68,64,699/- even though in the absence of any business / business income, you were not eligible to such set off. 4. During the course of the scrutiny proceeding, .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

raise any question regarding your eligibility for set off of brought forward losses. In fact, the above questions / issues did not cross his mind at all. In any assessment under the Income-tax Act, 1961, income has to be assessed head-wise and that too by applying the relevant statutory provisions. As the questionnaire dated 21.06.2010 would clearly show, these aspects escaped the attention of the Assessing Officer altogether. On the contrary, in the questionnaire dated 21.06.2010, the Assessing .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the Assessing Officer in your case for the A.Y.2008-09 is considered to be erroneous in so far as it is prejudicial to the interest of the revenue. Accordingly, and by virtue of the authority vested in the undersigned as per the provisions of section 263 of the Income-tax Act, 1961, the said order is proposed to be revised under the said section. 6. Pursuant to the notice proposing to revise the completed assessment, the assessee filed written submissions before the Commissioner to justify the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

d at the re-construction of the assessee society. As submitted, it was just that the entire business assets of the assessee society were let out temporarily. In the circumstances, the rental income derived by the assessee was only assessable as business income and not under any other head. The assessee relied on the decision in the cases of CIT vs. Vikram Cotton Mills Ltd., (1988) 169 ITR 597 (SC); and CIT vs. Mohiddin Hotels (P) Ltd. & Anr., (2006) 284 ITR 229 (Bom). The assessee further su .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the business of manufacturing sugar. Therefore, the assessee was eligible for deduction of the interest so incurred. For the same reason, its claim of depreciation was also valid. Lastly, the business was temporarily leased out and therefore the assessee s claim of set-off of unabsorbed business losses against the current year s income was also justified. 7. As a sequel to the aforesaid reply of the assessee, the Ld. Commissioner required the assessee to furnish year-wise details of manufacturin .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

assessee did not choose to reply in respect of aforesaid queries. 8. In the above background, the Ld. Commissioner observed that sufficient opportunity was given to the assessee and it has not been denied by the assessee that various issues raised in the notice under section 263 of the Act were not considered by the Assessing Officer in any manner. The assessee has also not rebutted the allegation that the impugned assessment order is erroneous in so far as it is prejudicial to the interest of t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

itherto (prior to 2001) being carried out by the assessee itself was to be carried out by the lessee. Further, all obligations including the statutory once got passed on to the lessee. Hereinafter and subject to disposal of stocks which had been generated prior to entering into lease, the assessee virtually did not have to do anything on its own apart from waiting for the periodic lease rent from time to time. In other words, the assessee s role became that of an ordinary landlord who lets out h .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nt order in which the Assessing Officer had accepted the rentals etc. returned by the assessee under the head business even while the facts on records in his opinion indicated to the contrary. 9. The Ld. Commissioner next distinguished the decision in the case of Vikram Cotton Mills Ltd. (supra) and Mohiddin Hotels (P) Ltd. & Anr. (supra) on facts. The Ld. Commissioner made averments to the effect that the intention of the parties to carry on business vis-à-vis exploitation of assets .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

see from leasing its premises is in the nature of income from business or income from other sources/ house property will have to be decided on the basis of the facts and circumstances of the given case, the terms and conditions of the lease, and above all, from the intention of the lessor in resorting to leasing. Accordingly, it will have to be decided whether lease was made due to a crisis situation which the lessor was not in a position to confront and whether the lease was in the nature of a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

reement the reason which made the assessee to enter into lease agreement has been stated thus; whereas the lesser on account of circumstances beyond its control as also on account of its limited crushing capacity was unable to operate during the last crushing season and was constrained to keep the unit shut for the season 2001-02 onwards to this day. " By virtue of the lease agreement, the assessee-lessor parted with its entire industrial unit for a period of 6 years, i.e., w.e.f. 2006-07 t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ever in respect of such obligations except in so far as the same related to the period prior to the lease. The assessee-lessor also was not to be involved in the manufacturing and other operations in any manner except for its right to dispose of the sugar and other by-products which were still in stock at the commencement of the lease. In short, during the period that the lease agreement was to be in force, the assessee-lessor would have no business rights or liabilities arising during the lease .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

other storage places situated within the factory premises of the lessor that are vacant on the date of the agreement. In as much as those of such premises that are not vacant the lessor shall hand over the vacant possession thereof immediately on the same becoming vacant." 12. Based on the analysis of the terms and conditions of the lease agreement above, the Ld. Commissioner observed that even though the assets leased out continued to be commercial assets, the lessee was entitled for full- .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ative Sugar Factories, New Delhi; etc.. However, these obligations will have to be seen in the light of the fact that the sugar factories in Maharashtra are controlled by certain laws and rules administered by the Government of Maharashtra. Hence, these obligations by themselves will not throw any light on the nature of the lease arrangement. He accordingly observed that the terms and conditions of the lease agreement would cumulatively indicate that the leasing made by the assessee was akin to .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

of speaking facts of the case. Where all the assets of the business are let out as in the present case, the period for which there are let out will be a relevant factor to find out the intention of the assessee to restart or to stop the business in the light of the Hon ble Supreme Court in the case of Universal Plast Ltd. and Vikram Cotton Mills Ltd. (supra). If there is no intention to resume the business, the transaction will not be for exploitation of business asset and will be taken as trans .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e agreement for shutting the business operations is that the assessee was unable to operate on account of circumstances beyond its control, as also on account of its limited crushing capacity, he noted that the circumstances beyond control have not been specified in the agreement, nor explained during the present proceedings. As for limited crushing capacity as the reasons advanced is also not plausible reason since the lessee who stepped into the shoes of the assessee for carrying on manufactur .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

reement, it is evident that assessee did not have any role in the business operation apart from getting periodic rent. The assessee would get the rent irrespective of whether any crushing was done or not. These are further indicators that the intention was to put the assets to profitable account much as an owner of the property would do. The Ld. Commissioner reiterated that information pertaining to year to year basis business related work since 2001 and other details were not provided which onl .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ysis of lease agreement and attendant circumstances narrated above, the Ld. Commissioner held that the order of the AO suffers from the error contemplated under S. 263 in accepting the rental income from letting activity etc. as business income which is liable to be assessed under the head income from house property or income from other sources and the order is also prejudicial to the interest of revenue in as much as the business losses of the earlier years have been allowed against non busines .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ications are that the income in the nature of rent, interest or other Income" are liable to be assessed either under the head "Income from Other Sources" or "Income from House Property". Such a treatment would have consequential bearing on the admissibility of the various expenses claimed by the assessee as deduction because deduction can be allowed only under the respective 'Heads of Income' if so permitted. It would also have bearing on the assessee's claim .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ding on the issues raised in the notice u/s.263 conclusively at this point of time. Even though the various indicators emerging from the lease agreement would lead to the inference that the assessee's income is not liable to be assessed under the head "Profit and Gains of Business and Profession", I would deem it proper to remit this matter to the file of the Assessing Officer so as to enable him to examine the issues raised in the notice u/s.263 and discussed here-in-above afresh .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

eedless to say, the Assessing Officer shall make the fresh assessment after giving the assessee reasonable opportunity of being heard. 8. In the result, the assessment made in the subject assessee s case for the A.Y. 2008-09, vide order dated 19.11.2010, is set aside. 15. Aggrieved by the order of the Ld. Commissioner invoking section 263 of the Act, the assessee is in appeal before us. 16. The Ld. Authorized Representative for the assessee reiterated that the factory premises and entire industr .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ssessment year 2008-09. The position of the assessee was endorsed in those assessment orders also which has not been questioned. There is no reason to deviate from the earlier stand taken by the Revenue in the matter. The Ld. Authorized Representative for the assessee further assailed the order on the ground that the assessment made under section 143(3) of the Act has been setaside holding that rent, interest or other income are liable to be assessed either under the head income from other sourc .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

entitled to assume revisionary jurisdiction under section 263 of the Act merely because he is not happy with the quality of the assessment or drafting of the order. For this proposition, he relied upon the decision in the case of M/s Khatiza S Oomerbhoy vs. ITO, (2006) 101 TTJ 1095 (Mum). The Ld. Authorized Representative for the assessee extensively argued in the alternative and without prejudice to the aforesaid contentions to say that while the lease rentals are assessed under the head incom .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

itled to 30% statutory deduction from gross rent. In the light of aforesaid the revision proposed by the Ld. Commissioner will not lead to any loss on the revenue as demonstrated below :- Income from other sources- Gross rent- 2,90,47,300/- Less interest- 2,84,95,300/- Depreciation- 30,23,116/- Admin Exp.- 7,64,771/- Total- 3,22,83,187/- Balance- Loss- 32,35,807/- House Property Income- Gross Rent- 2,90,47,300/- Less Prop. Tax-……….. 30% u/s 24(a)- 87,14,190/- Interest- 2,84, .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ing capital and huge brought forward losses which incapacitated the assessee to actual carry on of the business. Therefore, the leasing out of the factory premises for temporarily should not be seen adversely and lease rent be taken as business income as claimed. For this proposition, he relied upon the decision of the Hon ble Supreme Court in the case of CIT vs. Vikram Cotton Mills Ltd. reported in 169 ITR 597 (SC). The Ld. Authorized Representative for the assessee further supported its case o .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

he Assessee that in none of assessment orders in the past, the Assessing Officer have uttered that assessee had stopped its business and accordingly business loss was determined by the Assessing Officer and allowed to be carried forward in these respective assessment years. He therefore pleaded that on the principles of consistency, the action of the Assessing Officer in passing the similar order was fully justified and no interference of the Commissioner under section 263 is called for. For thi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ntative for the Revenue, on the other hand, strongly relied upon threadbare analysis of facts recorded in the order of the Ld. Commissioner and submitted that the Assessee as a matter of fact is not doing any business activity since 2001 onwards and entering into lease agreement for long period of six years from assessment year 2006-07 to 2011- 12 would clearly demonstrate that there is no intention to carry on the manufacturing activity by the assessee itself. The action of the assessee in ente .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

sessee has not demonstrated the crisis situation as well as circumstances beyond its control. The assessee has not clarified whether the business started even today inspite of fair opportunity in this regard. It is evident from the assessment order itself that the Assessing Officer has not made any enquiry whatsoever to ascertain the correctness of the claim of the assessee that the income declared as income from business is in tune with law in the given facts. There is no application of mind wh .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

for the AY 2008-09 on the ground that income declared by the Assessee has been wrongly accepted by the AO under the head business income as offered by the Assessee. Consequently, the unabsorbed business losses brought forward from earlier years have been wrongly allowed to be set off against the income of the assessment year in appeal. The CIT has also alleged that assessment has been completed in a perfunctory manner endorsing the income returned without conducting any enquiry on the correctnes .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

od of five years vide Lease Agreement dated 03.05.2006 as per copy of Lease Agreement annexed at pages 65 to 82 of the Paper Book. The observations of the Ld. CIT that prior to entering of aforesaid lease also, the Assessee had stopped the business for about 5 years is also to be borne in mind. In our view, once the assessee has ceased to carry on business activities since long and has also entered into lease for a fairly long period of 5 years, intention to exploit the factory premises and indu .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Assessee. The presence of Liquidator spells out that command over regular affairs are also vested with third person. Such a situation renders the possibility of resumption of business illusory. 23. The terms of the lease deed makes it abundantly clear that the Assessee is in no way involved in the business activity any more as quipped by the Ld. CIT and the entire factory premises and Industrial unit have been let out. The Assessee is merely entitled to pre-determined fixed periodic rent for ex .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

o prove its intention that it wants to come back in the business affairs actively in the near future, which has not been discharged except for making flippant averments. The facts of the case, on the other hand, are repugnant to the version of the assessee. We concur with the view of the Ld. Commissioner that the terms of the Lease Agreement would show that assessee is no way involved in the manufacturing activity. The assessee is holding the factory premises and industrial unit in the capacity .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ry about the current situation on resumption of manufacturing activities which tantamount to implicit admission that no re-commencement of business activity has taken place. There appears to be no rationale or intelligible nexus between the plea of the Assessee and the fact situation. In the totality of situation viz. stipulations in lease deed revealing the continuance of business by the lessee by exploiting the business set-up of the lessor in exclusion to the lessor, passive conduct over fair .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

erroneous as well as prejudicial to the interest of revenue without anything further. This well settled proposition is supported by long line of cases namely CIT vs. Shri Bhagwandas 272 ITR 367(All.) ; Vijendra Pal Singh vs. CIT 163 ITR 129 (Mad.); Dhariwal Industries Ltd. vs. ACIT 111 ITD 379 (SB) ; Ambika Agro Supplies vs. ITO 95 ITD 326 (Pune) ; Pancard Clubs Ltd. vs. Dy. CIT ITA No. 2389 & 2418 /Mum/2009 order dated 16/3/2011; etc. It would be expedient to note here that the decision of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

AO in summarily accepting the lease rent as business income as offered by the Assessee is thus vitiated by non application of mind. As a corollary, the assessment order is erroneous in so far as it is prejudicial to the interest of revenue. We also observe that it was also not demonstrated that enquiry about the bonafides of various expenditure claimed during the year has been made. The AO further clearly failed to examine the deductibility of such expenditure qua the lease rental etc. when ass .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e Assessee to set off the income of the year with the carried forward losses of the earlier years is lost. The Assessee has set off current year income of ₹ 2.68 crores approx against the unabsorbed business losses of the earlier years and rest has been carried forward on the premise that the lease rent continues to be in the nature of the business income since the act of let out is only temporary and therefore continue to retain the colour of business . Once it is found that the premise o .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

se rent is subjected to chargeability under the head income from house property or income from other sources , it is not prejudicial to revenue in view of purported losses declared. We are not convinced with this contention either. The income returned under the head business income for ₹ 2.68 crores is not reconciliable with the profit & loss account as well as estimated computation under different heads as noted in para 16 supra. The business income of the magnitude of ₹ 2.68 cr .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

onducting suitable enquiry. The entire act is thus prejudicial to the interest of revenue. 27. The judicial decisions cited by the learned AR for the Assessee are clearly distinguishable in the factual matrix of the case. The reliance placed on the decision of (i) Jewel of India vs. ACIT (2010) 325 ITR 92(Bom.) (ii) CIT vs. Gabriel India Ltd. 203 ITR 108 (Bom.) (iii) Globus Infocom Ltd. 108 DTR 363 (Del.) for the proposition that in the absence of clear finding of the CIT that order sought to be .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ome whether to be taxed under the head income from house property or income from other sources has been set aside to be examined by the AO in line with the provision of S. 263 of the Act. 28. Again while reliance placed on the decision of coordinate bench of tribunal in the case of Khatiza S. Oomerbhoy Vs. ITO 101 TTJ 1095 (Mum.) for the proposition that revisional powers cannot be invoked merely because the CIT is not happy with the quality of the assessment order is well taken. However, in the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

et aside of the assessment under S. 263 on demonstrable grounds does not cause prejudice to the assessee per se so long as the return of income filed is in accordance with law. The Assessee continues to enjoy fair opportunity to seek fresh assessment in accordance with law. 29. The decision relied upon in the case of CIT vs. Vikram Cotton Mills Ltd. 169 ITR 597 (SC); Tamil Naidu Tourism Development Corporation 368 ITR 533 (Mad.); Mohiddin Hotels Pvt. Ltd. 284 ITR 229 (Bom.) and others to treat t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rt the business, near absence of risk element etc. etc., the exit from business can not just be seen to be temporary in nature. 30. We are also not impressed by the other plank of argument on behalf of the Assessee that in the earlier assessment years, the order framed under S. 143(3) assessing lease rentals as business income on the similar facts have been accepted by the revenue. A bare perusal of the Assessment order pertaining to AY 2007-08; 2005-06; 2004-05 annexed to the paper book would s .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     bird's eye view     ↓  


|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version