TMI Blog2020 (7) TMI 308X X X X Extracts X X X X X X X X Extracts X X X X ..... claimed as income from other sources - PCIT s observations that the assessee could not demonstrate that the income from holiday homes as disclosed by it was in any manner whatsoever was examined during assessment; turns out to be factually incorrect since the AO had not only carried out necessary enquiries but also he changed the head of its income from other sources to business Hon ble Delhi high court in ITO vs. D.G. Housing Projects Ltd. [ 2012 (3) TMI 227 - DELHI HIGH COURT ] hold that the twin limbs of no enquiry or inadequate enquiry and an erroneous decision by the assessing authority stand on a different footing and the CIT cannot simply remand the issue back for afresh assessment qua the latter. Issue of the assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . - Decided in favour of assessee. - ITA No. 806/KOL/2019 - - - Dated:- 10-7-2020 - Sh. P.M. Jagtap, Vice President And Sh. S.S. Godara, Judicial Member For the Appellant : Sh. Sanjay Bhattacharya, FCA. For the Respondent : Sh. Radhey Shyam, CIT. ORDER PER SH. S.S. GODARA, JUDICIAL MEMBER: This assessee s appeal for AY 2014-15 arises against the order dated 20.03.2019 passed by the Pr. Commissioner of Income Tax, Kolkata-12, Kolkata in M. No. PCIT-12/Kol/263/2018-19/ in proceedings u/s 263 of the Income tax Act, 1961 (in short the Act ). Heard both the parties. Case file(s) perused. 2. We advert to the relevant facts in the instant case. This assessee is a cooperative credit society. Apart from carrying ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ative Society having the area of its membership confined to the permanent employees of CESC Ltd. It had income from the activity of providing credit facilities to its members and interest on deposit with the The West Bengal State Co- operative Bank Ltd. as well as income from interest on deposit with commercial bank. From the details available on the record it was observed that in the Income Expenditure Account, assessee had declared Gross receipt of ₹ 30,19,125/- under the head Income from Other Sources on account of maintenance of Holiday Homes and claimed expenses of ₹ 32,18,553/- as well as depreciation of Rs.l,49,456/-aggregating to Net Loss of ₹ 3,48,884/-. As per Balance Sheet, Fixed assets include the foll ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 22 of I.T. Act, 1961 states about the income earned from any building or land appurtenant thereto of which assessee was the owner, which was to be treated under the head Income from House Property . Accordingly ₹ 15,17,035/- was the income received from the Holiday Homes owned by the assessee. Therefore, such income should have been treated as Income from House Propperty and ₹ 15,02,090/- should have been assessed as income from other Sources. 4. The PCIT's revision order under challenge, passed after rejecting the assessee's detailed explanation, has directed the Assessing Officer to frame a fresh assessment going by the above extracted reasons. In other words, he has made it clear that the assessee's incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the latter. 6. We further notice that the issue of the assessment of assessee's income derived from holiday homes claimed as income from other sources in the computation but held as income from business during assessment in subsequent AY 2015-16; stands decided in its favour in the CIT(A)'s order dated 28.02.2018 (page 18 in records) i.e. much prior to the PCIT's issuing Section 263 show cause notice dated 11.04.2018. This tribunal s decision in the Kolkata Reserve Bank Employees Co-operative Credit Society Ltd. ITA 2253/Kol/2016 holds that such an income from holiday homes is not eligible for Section 80P(2)(i) deduction being not business income. It is crystal clear therefore that the head of assessee s income derived from i ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
