TMI Blog2017 (9) TMI 525X X X X Extracts X X X X X X X X Extracts X X X X ..... which are shown as stock-in-trade in the books of the assessee would be assessed under the head “Income From House Property” and not under the head of “Profits and Gains from Business and Profession”. We further note that the Hon’ble High Court of Delhi had similarly held in the case of CIT vs. Discovery Estates Pvt. Ltd. (2013 (3) TMI 124 - DELHI HIGH COURT). - ITA No. 4966/Del/2015 - - - Dated:- 1-9-2017 - SHRI H.S. SIDHU, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER For The Revenue : Sh. Shravan Gotru, Sr. DR For The Assessee : Sh. Arun Jain, CA ORDER PER H.S. SIDHU, JM:- The Revenue has filed the Appeal against the Order of the Ld. Commissioner of Income Tax (Appeals-I), New Delhi on t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oduced by the assessee were verified and examined. The assessee company is engaged in the business of promotion and development of DDA approved commercial complexes during the year under consideration. The business of the assessee company is to develop commercial projects within Delhi. The commercial units in the developed projects are either sold or given on lease. AO observed that over the years assessee has shown lease receipts from the properties given on lease as its business income. However, during the year under consideration the assessee company has deviated from accounting practice followed and has offered its lease receipts under the head of 'Income from House Property'. There is no rent change of facts and circumstances i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deleted the addition in dispute and allowed the appeal of the assessee. 3. Aggrieved with the Ld. CIT(A) s order dated 27.5.2015, Revenue is in appeal before the Tribunal. 4. Ld. DR relied upon the order of the AO and reiterated the grounds of appeal raised in the Appeal. 5. On the contrary, Ld. Counsel of the assessee has relied upon the order of the Ld. CIT(A) and also filed a Paper Book containing pages 1 to 74 in which he has attached the Extracts of the Section 23(5) of the I.T. Act introduced by Finance Bill, 2017; Extracts of CBDT Circular/ Memorandum explaining Section 23(5) of I.T. Act introduced by Finance Act, 2017; Extract of Speech of Sh. Arun Jaitley, Minister of Finance, introducing Budget 2017-18; Copy of judgment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the parties and perused the records. We have gone through the orders passed by the revenue authorities as well as the contention raised by the assessee in the grounds of appeal and also perused the decisions cited by the Ld. Counsel of the assessee attached with the Paper Book. We find that AO was of the view that the income from lease receipts is income from house property. We find that Ld. Counsel of the assessee has stated that the AO was not justified in treating the income as business income as against income from house property, because similar issue has already been decided by the Ld. CIT(A) in AY 2009-10 2010-11 in his favour and therefore, it was a covered issue. We note that Ld. CIT(A) has elaborately discussed the issue in dis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it is in accordance with the provision of Income Tax Act. The aforesaid view has been upheld by the Hon'ble Kolkata High Court in the case of Azimganj Estate Pvt. Ltd. Vs. C.I. T. III [308 ITR 205J by following the judgment of Supreme Court in the Case East India Housing and Land Development Trust Ltd. Vs CIT [24 ITR 49J and Sultan Bros (p) Ltd. Vs CIT (CS) 51 ITR 353. Relevant extract of the aforesaid judgment is reproduced as under:- In the case before us, the unsold flats being house property, pure and simple and having fallen under the head, income from house property, as provided in section 22 of the Act, in our opinion, Commissioner of Income-tax (Appeals) rightly held that the rental Income of such property should ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ame in correct head since Assessment Year 2009-10. Hence the observation of the AO has no merit, that the sole purpose of the appellant to declare the rental income under the head Income from House Property was to claim deduction @30% under section 24(a) of Income Tax Act and to reduce its tax liability. Change made by the appellant in the tax treatment of rental income is in accordance with the provision of the Income Tax Act therefore, the AO is duty bound to accept the same even if there is a change in tax liability of the appellant. Hence, in view of the above the rental income in the instant case is to be assessed under the head Income from House Property . 5.2.1 Similar views were held by Ld. CIT(A)-III in his ord ..... X X X X Extracts X X X X X X X X Extracts X X X X
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