TMI Blog2017 (1) TMI 511X X X X Extracts X X X X X X X X Extracts X X X X ..... ayala Corporation Pvt. Ltd. Vs. ACIT (2016 (8) TMI 522 - SUPREME COURT ), we are of the view that rental receipts from letting out commercial properties is assessable under the head income from profits & gains of business or profession and not as income from house property. - Decided in favour of assessee - I.T.A.No.383/Vizag/2014 - - - Dated:- 6-1-2017 - SHRI V. DURGA RAO, JUDICIAL MEMBER AND SHRI G. MANJUNATHA, ACCOUNTANT MEMBER For The Appellant : Shri G.V.N. Hari, AR For The Respndent : Shri Rajagopal, DR and Shri M. Narayana Rao, DR ORDER PER G. MANJUNATHA, Accountant Member: This appeal filed by the assessee is directed against order of Commissioner of Income Tax (A), Guntur dated 28.3.2014 and it pertain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore us and raised following grounds: 1. The Order dated 28-3-2014 passed by the learned Commissioner of Income tax, Appeals, Guntur in Appeal No. 130/CIT(A)/GNT/12-13, is against the appellant in so far as contrary to the law, facts and circumstances of the case. 2. The learned CIT(Appeals),Guntur, Ought not to have sustained the addition made by the assessing officer treating the income received by appellant firm as income from house property instead of business as claimed by the appellant. 3. The learned CIT(A), ought to have accepted the contention of the appellant since the letting out of properties at different places to different establishments is only in the nature of business and all such properties leased out are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under the head income from house property has been considered by this Tribunal, in assessee s own case in ITA No.275/Vizag/2012 dated 19.2.2016 for the assessment year 2008-09, wherein the coordinate bench held that rental income received by the assessee from letting out commercial properties is assessable under the head income from profits and gains of business or profession . On the other hand, the Ld. D.R. strongly supported order of the CIT(A). 4. We have heard both the parties, perused the materials available on record and gone through the orders of the authorities below. The factual matrix of the case which leads to additions towards rental income from letting out of commercial properties under the head income from house prope ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ied with the mutual consent of all the partners if deemed lucrative. From the above, it is clear that the intention of the assessee is to acquire the land by its own or by lease out the land for a longer period and there after construct a building and lease out the same to the third parties. This is the activity of the assessee. In the assessment order, the A.O. has noted that the assessee has leased out near about 4 properties one to Standard Chartered Bank, Mumbai, second to Bata India Limited, Calcutta, third to EDS Electronic Data Systems India (P) Limited and fourth to Food World Super Market (Spencer) Limited, though the nature of the business of the assessee is as per the partnership deed to construct the godowns or residential or c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orded that in the return that was filed, the entire income which accrued and was assessed the said return was from letting out of these properties. It is also recorded and accepted by the assessing officer himself in his order . The Hon ble Supreme Court by considering the East India Housing Land Development Trust Ltd. Vs. CIT (supra) and also the judgement of the Hon ble Supreme Court in the case of Sultan Brothers Pvt. Ltd. (supra) has held that letting out of the properties is in fact the business of the assessee, assessee therefore rightly disclosed the income under head Income from business it cannot be treated as an Income from house property and appeal filed by the assessee is allowed. 12. In the present case, the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e was obviously for the purpose of business and not with an intention to own it. If the intention of the respondent was to own the property, the transaction would have been different altogether. Though the lease was one of the forms of transfer of property, it does not lead to conferment of rights or ownership . 14. We therefore, respectfully following the judgement of the Hon ble Supreme Court in the case of Chennai Properties (supra) this appeal filed by the revenue is dismissed. 5. The assessee relied upon the decision of Hon ble Supreme Court in the case of Rayala Corporation Pvt. Ltd. Vs. ACIT (2016) 139 DTR (SC) 265. The Hon ble Supreme Court, held that assessee company being engaged solely in the business of leasing proper ..... X X X X Extracts X X X X X X X X Extracts X X X X
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