9911796707
TMI Blog2018 (1) TMI 87X X X X Extracts X X X X X X X X Extracts X X X X ..... under section 143(3) of the Income Tax Act, 1961(hereinafter 'the Act'). 2. The only issue in this appeal of Revenue is against the order of CIT(A) holding that the rental receipt from subletting of premises is business income instead of income from other sources and also allowing consequential expenses. For this Revenue has raised following ground No.1: - "On the facts and the circumstances of the case and in law, the Ld. CIT(A) has erred in holding that the rental receipts from subletting of 'factory premises along with 'furniture & fixtures' after manufacturing activities have ceased should be taxed under the head 'Business Income' instead of 'income from other sources' and also allowing the expenses claime ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he A.O. has disallowed the claim of the Appellant on the basis that the same has not been incurred for the income under the head income from other sources. As I have already directed the A.O. to treat the Business Service Center receipt as 'Business Income', the A.O. is therefore, directed to allow the expenditures as per the provisions of law and decision of ITAT." 4. We find that the AO also relied on the earlier orders for AY 2007-08 and 2009-10. In view of the above facts, the learned Counsel for the assessee stated that the issue is squarely covered by Tribunal's order in assessee's own case for AY 2009-10 in ITA No. 2166/Mum/2013 and for AY 2007-08 in ITA No. 6083/Mum/2010 vide order dated 06-06-2014, wherein Tribunal on bot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te control of the management of the centre. Further para 4 of the said agreement provides that common services and facilities may be made available on daily or weekly basis. This common services and facilities include the sweeping, peons, common receptions, use of cotton lounge and common personal service for members. Further para 17 of the this agreement reads, nothing herein contained shall in any way be construed as a tenancy of any sought between the parties nor shall confer any tenancy, lease, live and license conducting or other rights of any kind in the office spaces and the management of any sort of office space may be available for the member. By becoming a member of the centre the member shall not be deemed to have acquired any su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Mum/2005, by following the principle of consistency, has held that the income received by the assessee from executive business centre has to be treated as business income of the assessee. Considering the said decisions aforementioned, the fact that the assessee running the business centre by exploiting the property is not merely an activity of letting out the property and the fact that the assessee has been showing the rent received from letting out the business centre under the head business income continuously since 1984, we are of the considered view that the authorities below are not justified in treating the impugned receipts under the head income from other sources. Therefore, we direct the AO to treat the impugned receipts in both th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reveals that the expenses are for keeping the premises alive for earning the income from legitimate business of activity of renting. The legal fees expense claimed by the assessee is for the purpose of safeguarding the company's tenanted properties. In view of the fact that the income received from the business centre has to be treated as business income in pursuance of the adjudication aforementioned and the fact that the expenditures have nexus with the business income, the expenditures claimed by the assessee have also to be allowed as business expenditure. Accordingly, we direct the AO to allow the expenditure claimed by the assessee." 5. Similarly, Tribunal following the earlier order in AY 2008-09 in ITA No. 1095/Mum/2017 vide order ..... X X X X Extracts X X X X X X X X Extracts X X X X
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