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TMI Blog2015 (8) TMI 1466X X X X Extracts X X X X X X X X Extracts X X X X ..... /- respectively, as "income from house property'. 2. "On the facts and circumstances of the case, the CIT(A) erred in directing the AO treat the income from commercial complex as "income from business" without considering that the assessee has received rent for allowing use of the property and not for carrying out any systematic activity, which is precondition of business. 3. "On the facts and circumstances of the case, the CIT(A) erred in completely ignoring "the decision of Hon'ble Supreme Court in the case of Shambhu Investment (P) Ltd. V/s CIT(2003) 184 CTR (SC) 91: (2003) 263 ITR 143(SC), wherein it is held income derived by an assessee by letting out furnished premises on monthly basis to various parties along with vario ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted the AO to treat the income from the commercial complex as business income of the assessee and interest income as income from other sources. 4. At the outset, the ld.counsel for the assessee has contended that in the assessee's own case for the assessment year 2009-10, the Tribunal, vide its order dated 30.7.2014, has confirmed the order of ld. CIT(A) for that year, while dismissing the department's appeal and has upheld the action of the ld.CIT(A) in treating the operational income received by the assessee companies from running of Malls in the form of rent and service charges, as their business income. A copy of the said Tribunal order has been placed on record. 5. The department has not been able to refute the above position. The ld ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ources. Accordingly the grounds 1 to 3 are partlyallowed." Since the facts are similar in the present appeal for AY 2010-11, following the appeal orders in earlier years, in AY 2010-11, the AO is directed to treat the income from the commercial complex as income from business and interest income as income from other sources. Grounds No.1 to 3, thus, are partly allowed. In view of the finding given in respect of Grounds 1 to 3 that the income from commercial complex is to be treated as income from business, ground No. 4 is rendered infructuous and is dismissed." 7. For the assessment year 2009-10, vide order dated 30.7.2014, in ITA No.1230/Mum/2013, the Tribunal has upheld the action of ld.CIT(A) by observing, interalia, as follows : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT(A), the said income primarily arising from the exploitation of commercial assets by way of complex commercial activity constituted the business income of the assessee company. 15. It is observed that the decision of the co-ordinate bench of this Tribunal in the case of M/s Khandelwal Estate P. Ltd. (supra) cited by the ld. Counsel for the assessee also supports the case of the assessees. In the said case, the income received by the assesse from the operation of shopping malls in the form of rent and service charges was held to be business income of the ITA 8390/M/10, ITA 1435, ITA 1436/M/12 & ITA 1430 15 assessee by the Tribunal holding that giving space with services and facilities of varied and wide nature would definitely constitu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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