TMI Blog2017 (10) TMI 1419X X X X Extracts X X X X X X X X Extracts X X X X ..... sessing Officer noticed that the decision of the Tribunal has not been accepted by the Department and its appeal filed before the Hon’ble Bombay High Court u/s.260A of the Act was pending. For the said reasons, he has not followed the decision of the Tribunal for earlier years. On the contrary, the CIT(A) followed the decision of the Tribunal and allowed the claim of the assessee for treating such incomes as business income. The Hon’ble Bombay High Court in its order [2017 (7) TMI 779 - BOMBAY HIGH COURT] has upheld the stand of the assessee that such incomes are liable to be assessed as business income. Disallowance of interest paid on loan availed by the assessee from HDFC in respect to a property located at Chandigarh - Held that:- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... against the assessee's claim of ''Profit and Gains from Business or Profession (ii) Whether on the facts and in the circumstances of the case and in law, The Ld.CIT(A) has erred on facts and in law in completely ignoring the decision of the Hon'ble Supreme Court in the case of Shambhu Investment (P) Ltd vs CIT(2003) 184CTR (SC) 91: (2003) 263 ITR 143(SC) wherein it is held that income derived by an assessee by letting out furnished premises on monthly rent basis to various parties alongwith various services/ is assessable as income from property and not business income (iii) Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in allowing the interest expenditure of ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ved by the assessee from the activity of leasing, licensing of family entertainment centres cum malls / commercial complexes were assessed by the Assessing Officer as rental incomes under the head income from house property as against assessee s claim of assessing such income under the head Profits and Gains from business or profession . The Assessing Officer noted that assessee had shown such income under the head operating income comprising of rentals ofRs.12,37,03,004/- and maintenance charges of ₹ 4,12,56,372/- besides other income of ₹ 9,80,960/-. Following the stand of the assessing authorities in the past years of A.Y.2008-09 to 2011-12, the Assessing Officer proceeded to assess the said income under the head Income f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 81,97,475/- was disallowed and at the same time he allowed deduction u/s.24(b) of the Act of ₹ 8,69,79,453/- (i.e. ₹ 10,51,76,928/- - ₹ 1,81,97,475/-). 8. The CIT(A) allowed claim of the assessee by noting that the income from lease / rentals was assessed as business income and therefore, the interest expenditure on loans availed from HDFC was an allowable expenditure. 9. On this aspect also, we found no merit in the appeal of the Revenue in as much as it is consequential to the upholding of assessee s stand of the income from lease / rentals being liable to be assessed as business income. 10. At the time of hearing, the learned DR fairly conceded the aforesaid in view of the Hon ble Bombay High Court order dated ..... X X X X Extracts X X X X X X X X Extracts X X X X
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