TMI Blog2018 (7) TMI 368X X X X Extracts X X X X X X X X Extracts X X X X ..... d delete the disallowance made on account of interest - Assessee appeal allowed. - I.T.A No. 95/Kol/2017 - - - Dated:- 4-7-2018 - Shri P. M. Jagtap, Accountant Member And Shri S.S. Viswanethra Ravi, Judicial Member For the Appellant : Shri Soumitra Choudhury, Advocate For the Respondent : Shri S. Dasgupta, Addl. CIT (DR) ORDER Shri S.S.Viswanethra Ravi, JM This appeal by the assessee against the order dated 28.10.2016 passed by the Commissioner of Income Tax (Appeals)-11, Kolkata for the assessment year 2010-11. 2. The only issue is to be decided is as to whether the licence fees received from tenants is to be considered as income from business or income from house property. The Assessing Officer and CIT(A) held ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... espect of the very same property a portion of which on lease to a sister concern M/s Konark Furniture Pvt. Ltd dealt with the income from letting has to be assessed in ITA No.1042/Kol/2012by order dated 12.12.2014. The Tribunal held as follows :- 5. We have heard the rival contentions and gone through the facts and circumstances of the case, We find that the assessee is a registered limited company deriving its income from licence fees from different sub-tenants, The assessee is a tenant of Dalhousie Properties Ltd. under Tenancy Agreement dated 01-04-2001 in respect of ground floor space at Stephen House-63 58 of Hemanta Basu Sarani, Kolkata-700 001. The assessee was given right to, assigned, sub-let. under-let or part with any p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sole factor for assessment of such income as income from house property. It is necessary to find out the primary object of assessee while exploiting the property. If it is found that the main intention is for letting out the property or any portion thereof the same must be considered as rental income or income from house property. In case, it is found that the main intention is to exploit the immovable property by way of complex commercial activities, in that event it must be held as business income , The view was expressed by Hon'ble Calcutta High Court and approved by Hon'ble Supreme Court in case of Shambhu Investment (P) Ltd.(Supra) In this view of the matter, it is clear that what is to be really seen is whether the property ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e have to bear in mind that the policy of law is that there must be a point of finality in all legal proceedings, that stale issues should not be reactivated beyond a particular stage and that lapse of time must induce repose in and set at rest judicial and quasi-judicial controversies as it must in other spheres of human activity , Hon'ble Supreme Court was of the view that the assessments are certainly quasi-judicial and observations so made in the case of Parashuram Pottery Works Co. Ltd. (supra) would apply to the assessment proceedings. In the case of Parashuram Pottery Works Co. Ltd. it was observed that res judicata does not apply la income tax proceedings and each assessment year being a unit, what is decided in one year may n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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