9911796707
TMI Blog2016 (11) TMI 1598X X X X Extracts X X X X X X X X Extracts X X X X ..... e is against the order of CIT (A) in deleting the addition made by Assessing Officer under the head income from business as against declared by assessee as income from business. For this Revenue has raised following two effective grounds No. 1 & 2 as under :- "1. Whether on the facts and in the circumstances of the case and in law, the Ld. CIT (A) has erred in deleting the addition of house property income determined by the Assessing Officer of Rs. 40,07,894/- against the income/loss shown as business income by the assessee." 2. Whether on the facts and in circumstances of the case and in law, the Ld. CIT (A) relying upon the decision of Apex Court in the case of M/s. Chennai properties and Investments has failed to appreciate that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment with this Eagle Burgmann India Pvt. Ltd for maintenance and security of the Indiplex-l. In the P&L No the assessee has credited leave & license fee received of Rs. 5.82.016 land service charges of Rs. 21,24,776 under the head Business income. For the Industrial building Indiplex-Il the assessee has entered into leave and license agreement with M/s Microtact Hydralic (India) P. Ltd on 18" December. 2009." The assessee also filed submissions before us, which reads as under:- 'The entire premises were developed and constructed by our client to be used as industrial estate. The structures of the building were designed and constructed with the intention of always using them as industrial units. Our client has also installed crane and pul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... industrial units along with venous infrastructure facilities and they also provide various other services to the licensees. In addition to the aforesaid, out client would also like to state that the directors of our client are also employed fulltime to enable the smooth functioning and operation of the industrial complex and to look after the day to day activities which are involved in maintenance of the industrial units and also to cater the various requirements of the licensees. Directors Remuneration amounting to Rs. 15, 55, 000 is paid to the directors during the year and the same can be verified from note 9 of the "Schedule 16. Noted to Accounts." In view of the above facts, we find that this issue is covered in favour of assessee an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... perties and earn income by letting the same, said income was to be brought to tax as business income and not as income from house property. It is noted that facts of the present case are identical to the facts of the case of Chennai Properties and Investments Ltd. as discussed and the ratio as laid out by the Apex Court is applicable on the facts of the case: Respectfully following the judgment of the Apex ' Court in the case of Chennai Properties and Investments Ltd. and on the facts of the case it is held that the income earned by the appellant company during the year was in the nature of business income and not in the nature of income from House Property as taken by the Learned Assessing Officer. The additions made by the Assessing Offic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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