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TMI Blog2016 (2) TMI 234X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeals) is not justified in sustaining the addition of Rs. 2,18,400/- under the head income from other sources as against income from business. 3. Brief facts are that the Assessing Officer in the course of assessment proceedings required the assessee to produce ledger account of sales and details of business activities carried on, as the assessee admitted an amount of Rs. 2,18,400/- as sales in the profit and loss account. The assessee submitted a reply stating that there were no purchases during the year and sales were made out of opening stock and sales are made only to keep sales tax license and other statutory licenses alive and the Accountant who maintained all accounts, bills and vouchers had left services and it is difficult to tra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s without furnishing basic evidences in support of its claim. Even before the undersigned, the AR of the appellant failed to prove that any business activity was in fact carried out during the year under consideration by producing the evidences like sale bills, sale invoices and related expenses. No evidences were also furnished with respect to claim of expenses debited in the P&L account other than the municipal taxes paid. Therefore, the AO is legally correct in treating the receipt shown in P&L account for the amount of Rs. 2,18,400/- as assessable under the head income from other sources. The ninth ground of appeal filed by the appellant to allow the proportionate expenses relating to earning of income of Rs. 2,18,000/- is also not acce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g on the business of tannery at No.4, Periyapalayathamman Koil Street, Chrompet, Chennai. Later on, the assessee converted the leather processing unit into commercial complex and the rental income was shown as business income by the assessee. However, the Assessing Officer treated such rental income as income from house property. On appeal, the Commissioner of Income Tax (Appeals) sustained the action of the Assessing Officer in treating the rental income as income from house property as against the claim of the assessee under the head business. 10. Counsel for the assessee submits that the lower authorities erred in ignoring the fact that letting of part of the business premises for rental purposes had been only a stopgap arrangement till ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . M.A.M.Balachander. I find that the various clauses of the lease agreement relate to lease of the building and parcel of the land for a monthly rent of Rs. 46,000/- and all the expenditures related for the maintenance of the godown was to be borne by lessee only at their own cost. The lessee is only responsible for maintenance of the goods at the godown premises which was taken on lease from the appellant for a fixed period. The appellant is in no way concerned with maintenance of the godown and also upkeep of the goods kept in the godown. The lessee is responsible for payment of ESI and EPF and salaries to the employees or labourers for storing and keeping vigil on the goods stored by the lessee. The nature of the agreement between the ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... property". Hence all the grounds of appeal filed on this issue are rejected." 13. On going through the order of the Commissioner of Income Tax (Appeals) we do not find any infirmity in holding that lease income from letting out of the unit of the assessee is to be assessed under the head 'income from house property' and not as income from business. Thus, we uphold the order of the Commissioner of Income Tax (Appeals) and reject the grounds raised by the assessee on this issue. 14. Since the main appeal of the assessee itself is disposed off, the stay petition filed by the assessee becomes infructuous and the same is dismissed. 15. In the result, both the appeal and stay petition of the assessee are dismissed. Order pronounced in the op ..... X X X X Extracts X X X X X X X X Extracts X X X X
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