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TMI Blog2020 (9) TMI 732X X X X Extracts X X X X X X X X Extracts X X X X ..... the same Bench in the case of Assessee itself in T.C.A.Nos. 314 and 315 of 2017 (Principal Commissioner of Income Tax vs. M/s.Khivraj Tech Park, order dated 27 July 2020, reported in 2020 (118) Taxmann.com 224 Madras). 3. The relevant portion of the judgment is quoted below for ready reference. 5. Having heard the learned counsel for the petitioner, we are of the clear opinion that the controversy is no longer res integra and it is squarely covered by the recent judgment of the Division Bench of this Court in the case of M/s. PSTS Heavy Lift and Shift Ltd., Wavoo Mansion, 2nd Floor 48, (Old No.39), Rajaji Salai vs. M/s. CeeDeeYes IT Parks Pvt. Ltd., decided on 30 January 2020, in Tax Case Appeal Nos.2193 to 2195 of 2008 & 979 of 2009. P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r Chapter VIA. But, the deductions under the Head ?Income from House Property?; are restricted to those specified in Section 24 of the Act, like 1/6th of the annual income towards repairs and maintenance to be undertaken by landlords, interest on capital employed to construct the property etc. Therefore, in all cases, such income from property cannot be taxed only under the head ?Income from House Property?. It will depend upon the facts of each case and where such income is earned by the Assessee by way of utilisation of its business assets in the form of property in question or as an idle property which could yield rental income by its user, by the lessees. In the earlier provisions of Income from House Properties, even the notional inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rofits of which are chargeable to income tax, shall be chargeable to Income Tax under the head ? Income from house property?. Thus, even the amended definition intends to tax the notional income of the self occupied portion of the property to run Assessee's own business therein as business income. Therefore, the other rental income earned from letting out of the property, which is the business of the Assessee itself, cannot be taxed as Income from house property. 21. Moreover, the Heads of Income, as defined in Section 14 of the Act do not exist in silos or in watertight compartments under the Scheme of tax and thus, these Heads of Income, as we have noted above, are fields and heads of sources of income depending upon the nature ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... claim of the Assessee to tax the income from the software companies in the form of lease rentals from Olympia Tech Park as income from business and thereupon allowing this deduction under Section 80IA of the Act, which is allowed only if the income from business is taxed under the head ?Income from business? at the hands of the Assessee. We do not find any material on record to establish that such income of the Assessee during the relevant year was from any of its idle properties and the Assessee company used to enjoy such properties as a landlord from only earning the rental income. 8. On the contrary, it seems that the Assessee diversified and added its business line for the development of real estate of particular type, namely software ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng binding precedents from the jurisdictional high Court. This tendency of the revenue authorities not to follow the judgments of superior Constitutional Courts deserves to be strongly deprecated by imposition of suitable costs on them. 10. We would have imposed costs on the Assessing Authority for not following the binding precedents of the Court, but, at the repeated request of the learned counsel for the Revenue, we are making it cost easy for the appellant Revenue with the hope that the Revenue will understand the ratios of the judgments clearly and apply the same in its letter and spirit truthfully. 11. With the above observations, we dismiss the appeals. No costs. Consequently, connected miscellaneous petition is also dismissed. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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