TMI Blog2018 (2) TMI 349X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee's receipts should be considered as business income - Decided in favour of assessee. - ITA No.3326/MUM/2017 - - - Dated:- 5-2-2018 - Shri Shamim Yahya, Accountant Member For The Appellant : Shri K Gopal For The Respondent : Ms N Hemalatha ORDER This is an appeal by the assessee directed against order of learned CIT(A)- 17, Mumbai, dated 20.02.2017 and pertains to assessment year 2012-13. 2. The grounds of appeal read as under: 1. The Ld. CIT(A) erred in confirming the action of the Ld.A.O. in making addition of ₹ 12,07,252/- by treating the compensation received from terrace antenna and hall booking as Income from Other Sources instead of Business Income without appreciating fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Act. During the course of assessment proceedings, Assessing Officer noted that assessee is in the receipt of Rental Income of ₹ 31,30,7367-. However, the same has been credited in Profit and loss account and also assessee has claimed expenditure of ₹ 18,57,572/- against the same. Assessee contended before the Assessing Officer to consider the rent received from Tenants as House Property Income and allow the standard deduction @ 30% u/s.24 of the Act. Assessee company further contended to treat the receipts of income from the let out of Terrace Antenna and Hall as Business Income and allow the expenditure against the same. The Assessing Officer did not accept the contention of the assessee and taxed the income received from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in Estate both in Chennai and to let out those properties as well as make advances upon the security of lands and buildings or other properties or any interest therein. e) Assessee company has itself admitted to tax the rental receipts under the head Income from House Property . The AR of the assessee company is contending only to tax the compensation received from terrace antenna and hall booking of ₹ 12,07,252/- under the head Business Income instead of Income from Other Sources and allow the Business expenses of ₹ 18,57,572/- against the same. It is to be noted that compensation received from -letting-the terrace antenna and hall booking are incidental to the letting out the propertie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s from letting of the properties and the rental income derived from the same and it should be treated as business income. In this regard, he referred to the decision of Hon ble Supreme Court in the case Rayala Corporation (P) Ltd. vs. ACIT 72 taxmann.com 149 (SC). 6. Per contra learned Departmental Representative relied upon the orders of the authorities below. He further referred to the decision of Hon ble Supreme Court in the case of Raj Dadarkar Associates vs. ACIT 81 taxmann.com 193. 7. On careful consideration I note that it is undisputed that assessee company's only source of income is from letting out of properties. This is duly supported by the profit and loss account submitted by the assessee. Even the Assessing Officer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the company is to lease its property and to earn rent and therefore, the income so earned should be treated as its business income. 12. In view of the law laid down by this court in the case of Chennai Properties (supra) and looking at the facts of these appeals, in our opinion, the High Court was not correct while deciding that the income of the assessee should be treated as income from house property. 13. We, therefore, set aside the impugned judgment and allow these appeals with no order as to costs. We direct that the income of the assessee shall be subject to tax under the head Profits and gains of business or profession 8. The decision relied upon by the learned counsel for the Departmental Representative in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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