TMI Blog2012 (12) TMI 1037X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee filed his return of income on 10/10/2008 admitting total income of ₹ 2,07,200/- consisting of income from house property, business and other sources. Assessment u/s 143(3) of the IT Ac was completed determining the total income of the assessee at ₹ 26,48,120/- by treating the hire charges as income from house property. 3. Aggrieved, the assessee preferred the appeal before the CIT(A). 4. Before the CIT(A), the assessee agitated the only issue relating to the treatment of income from amenities derived by the assessee as income from house property. 5. Briefly, the facts are that the assessee is an NRI and filed his return of income for the AY 2008-09 on 10/10/2008 declaring total income of ₹ 2,07,200/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ved in the current year is identical, therefore, respectfully following the orders of the worthy ITAT in the appellant s own case as referred to above, I hold that the income computation by the AO is correct and the income in question has to be treated as income from house property. 8. Aggrieved, the assessee is in appeal before us and has raised the following grounds of appeal:- 1. On the facts and in the circumstances of the case the order of the CIT(A) is erroneous, illegal and against the law and prejudicial to the appellant. 2. The CIT(A) erred in sustaining the finding of the AO that the rent from amenities derived by the appellant is assessable under the head income from house property . The CIT(A) failed to appreciat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Brothers Trust, Secunderabad Vs. ACIT for the assessment years 2000-01. We have gone through this order. There is no ready made formula for deciding this issue. Each case has to be decided on its own facts and as such, we have to see the facts of the present case. As we have gone through the entire facts of the case and also agreement entered between the parties i.e. the Rent agreement and also we have gone through various items given on hire charges to the tenants. We have also gone through the amenities provided to the tenants. 9. The annual rent in a case when the property is let through out the year is the actual rent received or receivable by the owner. When the amount of the actual rent received or receivable by the owner, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the rental amount for providing amenities. It cannot be real one and assessing officer required to see the actual rental value of the property in that place and bring that amount into tax under the head income from house property. As such, in the present case, the assessing officer came to the correct conclusion that real rental value was bifurcated into two separate income viz., one is rental income of house property and another is hire charges of the equipment. Further, in the case of letting of the machinery, plant or furniture, sec.56(2) (iii) of the Act is applicable, but only letting of building with certain amenities, this provision is not applicable and in that event, the income from letting out was chargeable under the head in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g out of assets would fall under the head profit and gains of business or profession and it has to be determined from the point of view of a businessman in that business depending upon the fact and circumstances of each case and there is no readymade jacket formula. The ratio laid down by one case cannot be applied or fit to the facts of the present case. We have to see the intention of the assessee whether the letting was the doing of a business or to exploitation of his property by an owner. The assessee when exploited the property to derive rental income it has to be held that the income realized by him by way of rental income from a building if the property with other asset attached to the building to be assessed as income from h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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