TMI Blog2016 (11) TMI 1255X X X X Extracts X X X X X X X X Extracts X X X X ..... s : Mr. D.V. Pathy, Advocate Mrs. Manju Jha, Advocate For the Respondent s : Mr. Rishi Raj Sinha, Sr. S.C. Mrs. Archana Prasad, Jr. S.C JUDGMENT ( Per: Honourable The Acting Chief Justice ) The present is an appeal under Section 260A of the Income Tax Act, 1961 arising out of an order dated 6th February, 2007 passed by the Income Tax Appellate Tribunal, Patna Bench, Patna in I.T.A. No.369/Pat of 2004 for the assessment year 1998-99. 2. The appellant is an assessee, who has constructed a commercial complex in the name and style of Pandooi Place at Boring Road, Patna. The assessee is drawing rental income from the same. The construction of this property was started relevant to assessment year 1990-91, but after completion ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vestments Ltd. V. CIT, [2015] 373 ITR 673 and Rayala Corporation Pvt. Ltd. Vs. Assistant Commissioner of Income Tax, [2016] 386 ITR 500, to contend that in a case of an assessee drawing rental income from a building constructed for earning income is an income from the business and not an income from the house property. It is also pointed out that the judgment in the case of East India Housing and Land Development Trust Ltd. (supra) and Constitution Bench judgment in Sultan Brothers (P) Ltd. V. Commission of Income Tax, [1964] 51 ITR 353 were considered by the Hon ble Supreme Court in Chennai Properties and Invest Ltd. (supra) and it was held that income in such circumstances has to be treated as income from business. The relevant extracts r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assets are commercial assets in their very nature. 11. We are conscious of the aforesaid dicta laid down in the Constitution Bench judgment. It is for this reason, we have, at the beginning of this judgment, stated the circumstances of the present case from which we arrive at the irresistible conclusion that in this case, letting of the properties is in fact is the business of the assessee. The assessee therefore, rightly disclosed the income under the head income from business . It cannot be treated as income from the house property . We, accordingly, allow this appeal and set aside the judgment1 of the High Court and restore that of the Income Tax Appellate Tribunal. No orders as to costs. 6. In a later judgment in Rayala ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
