TMI Blog2021 (4) TMI 294X X X X Extracts X X X X X X X X Extracts X X X X ..... bsequently, the rent receipts on these commercial assets is to be treated as business income under Chapter - IV-D under the head profits and gains of business or profession but not under Chapter VI-C under the head income from house property as claimed by the assessee. As decided on M/S ULTRAVISION ASSOCIATES AND VICE-VERSA [ 2016 (3) TMI 1109 - ITAT RAJKOT] there was a dispute between the assessee and the AO, as the AO treated the income of the assessee as income from house property whereas the assessee had offered it as business income . On appeal, before the ITAT, the coordinate bench has decided the issue in favour of the assessee that letting out of commercial assets is to be treated as business income. We uphold the ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... grounds as advised, on or before the date of hearing. 2. Brief facts of the case are that the assessee is a firm running Hospital till 31/10/2015 and thereafter gave its business assets on lease basis for the remaining part of the year. The assessee filed its original return of income for AY 2016-17 on 17/10/2016 admitting an income of ₹ 86,90,973/-. Statutory notices were issued calling for information. The assessee files its revised return of income on 08/11/2017 declaring total income at ₹ 33,64,220/-. 2.1. The AO observed that during the year, the assessee was running hospital till 31/10/2015. Late on, the assessee has leased out to M/s. Thumbay Hospital. After examining the lease deed submitted by the assessee with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Still aggrieved the assessee is in appeal before the Tribunal. 5. Before us, the ld. AR of the assessee submitted that the main objects of the assessee was never to let out its assets, but, due to slow down of business on account of the health of the pivotal partner, Dr. Mohd. Masood Ali Khan. He further submitted that since it was becoming difficult for the assessee to continue the hospital operations, it was decided to let out the assets of the firm to another healthcare facility. He relied on the decision of Hon'ble Apex Court in the case of Chennai Properties Investments Ltd., Vs. CIT [ (2015) 373 ITR 673 (SC)]. 6. The ld. CIT-DR, on the other hand, besides relying on the orders of revenue authorities, submitted that the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts leased out to the Thumbay Hospital India Pvt. Ltd. were using as commercial assets before letting it out by the assessee. Therefore, subsequently, the rent receipts on these commercial assets is to be treated as business income under Chapter - IV-D under the head profits and gains of business or profession but not under Chapter VI-C under the head income from house property as claimed by the assessee. This view is supported by the decision of the coordinate bench of Tribunal, Rajkot in the case of M/s. Ultravision Associates in ITA No. 337/Rjt/2013 and others, wherein the coordinate bench has held as under: 7. We have heard the rival submissions and perused the material on record. The issue in the present ground is about the hea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e derives income from a commercial asset which is capable of being used as a commercial asset and the asset would not cease to be commercial asset simply because temporarily it not put to use or was let out to other person for his use, the income derived would be business income irrespective of the manner in which it is exploited by the owner of business. In the present case the finding of ld. CIT(A) that asset is a commercial asset has not been controverted by Revenue. In such a situation, we do not find any infirmity in the order of ld. CIT(A) and for which we also find support by the recent decision of Hon'ble Calcutta High Court in the case of Shyam Burlap Co. Ltd. vs. CIT reported in (2016) 380 ITR 151 (Cal), wherein the Hon'bl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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