2016 (8) TMI 203

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..... ses under the head income from house property against the business income shown by the assessee. 2. Heard and considered the arguments advanced by the parties in view of orders of the authorities below, material available on record and the decisions relied upon. 3. The facts in brief are that the assessee, a partnership firm had disclosed rental income of ₹ 8,11,046 as business income in its profit and loss account and net income of ₹ 2,325 was shown as business income after claiming depreciation on go down building and other consequential expenses. The Assessing Officer did not agree and held the receipt as income from house property . The same has been upheld by the Learned CIT(Appeals) which has been questioned befor .....

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..... regard, he placed reliance on the decision of Hon'ble Delhi High Court in the case of CIT vs. Kelvinator of India Ltd. (2002) 256 ITR 1 upheld by the Hon'ble Supreme Court reported in (2010) 320 ITR 561 (SC) holding that reopening is not permissible on the basis of change of opinion and if notice under sec. 148 is issued without the jurisdictional foundation available under sec. 147 of the Act, the notice and subsequent proceedings will be invalid. 5. On merit, the Learned AR submitted that the issue raised is fully covered in favour of the assessee by the recent decision of the Hon'ble Supreme Court in the case of Chennai Properties Investment Ltd. vs. CIT (2015) 373 ITR 673 (SC) reversing the decision of Hon'bl .....

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..... he case of CIT vs. Goel Builders (supra) has been pleased to decide the issue in favour of the assessee. In that case also, the assessee had earned income from letting of a commercial assets and the Hon'ble High Court held that the income derived from letting of commercial assets will constitute business income and not income from house property. The Learned CIT(Appeals) in the present case before us has followed the decision of Hon'ble Madras High Court in the case of CIT vs. Chennai Properties Investments Ltd. 266 ITR 685 (Mad.) to come to the conclusion that the rental income from letting out warehouse in the present case was not business income as claimed by the assessee but it was income from house property. The said decisi .....

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