9911796707
TMI Blog2017 (2) TMI 160X X X X Extracts X X X X X X X X Extracts X X X X ..... sallowing depreciation on the same amounting to Rs. 72,99,113/-. 2. The facts of the case are that the assessee filed its return of income on 30.9.2011 declaring total income of Rs. 94,86,773/-. Thereafter the case of the assessee was selected under CASS and statutory notices under section 143(2) and 142(1) were issued and served upon the assessee. The assessee was carrying on the business of real estate including that of leasing out its properties besides having a consultancy division. The assessee received income from house properties to the tune of Rs. 2,22,61,129/- comprising rental from premises, car parking and Rs. 91,01,461/- as income by way of lease from amenities and infrastructure provided in the premises and were accordingly sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the facts and circumstances of the case, statement of facts, relevant assessment order, written submission, relied upon case laws and the arguments made by the LAR before the undersigned. The only substantive issue in this appeal is regarding the treatment of income of rent from the property of the appellant company. The AO has treated the same as income from house property on the ground that during the year under consideration the appellant has earned income only from letting out its property to other persons, therefore, the income earned by it is taxable under the head income from house property. On the other hand, it is the claim of the appellant that the income from the amenities an infrastructure etc. should be held as business inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to appreciate the facts in correct perspective as the assessee was in the business of real estate including letting out properties and other items of furniture and plant & machinery and accordingly entered into separate agreements for letting out of premises as well as letting out other amenities and infrastructures. The income from letting properties was shown as income from house property whereas the income from letting out amenities and infrastructures was shown as income from business after claiming the deduction of depreciation. The ld. AR submitted before us that in the earlier years the income has been accepted by the department as returned by the assessee in variance to the stand of the revenue in the current assessment year. Duri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m which was shown as business income after claiming depreciation on the said items and expenses connected therewith. The reliance was placed by the AO in the case of M/s Shambhu Investment Pvt Ltd (supra) for supporting his treatment by rejecting the contention of the assessee and treated the same as income from house property which was also upheld by the FAA whereas the ld.AR vehemently submitted that the income has been assessed under separate heads in the earlier years also and the stand of the department is against the principle of consistency. In our opinion, the order of the ld. CIT(A) in upholding the assessment order appears to be incorrect as the assessee's business was to lease out its properties and to deal in real estates assets ..... X X X X Extracts X X X X X X X X Extracts X X X X
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