TMI Blog2017 (8) TMI 651X X X X Extracts X X X X X X X X Extracts X X X X ..... er the same would be assessed as income from other sources. Since the factory building was neither acquired nor held by the assessee for the purpose of letting out but it was held by the assessee for its textile business which was discontinued then for the claim of business income cannot be accepted. Accordingly, in view of the above discussion, the Assessing Officer is directed to assess the rental income as income from other sources and allow the deductions as per Section 57 of the Act as well as the expenditure on maintenance of the company in existence. - I.T.A. No.373/Bang/2017 - - - Dated:- 28-4-2017 - SHRI VIJAY PAL RAO, JUDICIAL MEMBER For The Appellant : Shri P. Dinesh, Advocate For The Respondent : Shri AR.V.Sreen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt prays that the appeal may be allowed. 3. The only dispute raised in this appeal is regarding the rental income from leasing of property owned by the assessee was assessed by the Assessing Officer as income from house property as against the income from business claimed by the assessee. The assessee discontinued the business of textile mills and leased out the factory premises. The income from leasing out of the factory premises was offered by the assessee as business income. However the Assessing Officer has assessed the rental income as income from house property. The assessee challenged the action of the Assessing Officer before the CIT (Appeals) and submitted that the object of the assessee in the Memorandum of Association includes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g main objects as well as incidental or ancillary objections held that letting of property is business of the assessee and therefore it was rightly disclosed the income under the head Income from Business . 5. On the other hand, the learned Departmental Representative has relied upon the orders of the authorities below and submitted that the only source of income returned by the assessee is rental income and there is no other business activity of the assessee during the year under consideration. Therefore once the assessee has closed his business activity then the rental income of the factory building cannot be treated as business income. He has further submitted that the letting out of the property and machinery is not the main busines ..... X X X X Extracts X X X X X X X X Extracts X X X X
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