TMI Blog2021 (6) TMI 152X X X X Extracts X X X X X X X X Extracts X X X X ..... decided in VELANKANI INFORMATION SYSTEMS (P.) LTD. [ 2013 (8) TMI 113 - KARNATAKA HIGH COURT] What is the intention behind the lease and secondly what are facilities given along with the buildings and documents executed in respect of each of them is to be seen. Thirdly, it is to be found out whether it is inseparable or not. If they are inseparable and the intention is to carry on the business of letting out the commercial property and carrying out complex commercial activity and getting rental income therefrom, then such a rental income falls under the heading of Profits and gains of business or profession . In fact, any other interpretation would defeat the very object of introduction of section 80-IA as well as the scheme which is fra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to pass a speaking order by considering the objections as to the reopening of assessment at this juncture especially when the assessing authority records that he has not considered the objections for want of supporting evidence? (2) Whether on the facts and circumstances of the case, the Appellate Tribunal was justified in directing the respondent to take necessary action for disposing of the objections ignoring the fact that the impugned assessment order is void in view of the law laid down by the Hon'ble Apex Court in the case of GKN Driveshafts? (3) Whether on the facts and circumstances of the case, the findings of the Appellate Tribunal that income earned by the appellant from letting out of the building along with othe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... KAR . On the other hand, learned counsel for the revenue was unable to dispute the same. 3. We have considered the submissions made by learned counsel for the parties and have perused the record. It is not necessary for us to answer substantial question of law Nos.1 and 2 as they have been not pressed by the assessee. A division bench of this court in 'CIT VS. VELANKANI INFORMATION SYSTEM PRIVATE LIMITED', (2014) 2 ITR-OL 138 KAR has held as under: 25. The doctrine of inseparability finds a place in these two provisions. The inseparability referred to in the said provision is arising from the intention of the parties. 26. We have to find out in that context what was the intention of the parties in entering into th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder any of the heads specified in Section 14, items A to E. Sub-section (2) of Section 56 specifically states that the income shall be chargeable to Income tax under the head Income from other sources . Clause (ii) of Section 56(2) provides that income from machinery, plant or furniture belonging to the assessee and let on hire, if the income is not chargeable to Income-tax under the head profits and gains of business or profession. Clause (iii) also provides that where an assessee lets on hire machinery, plant or furniture belonging to him and also buildings, and the letting of the buildings is inseparable from the letting of the said machinery, plant or furniture, the income from such letting, if it is not chargeable to Income tax under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the intention is to carry on the business of letting out the commercial property and carrying out complex commercial activity and getting rental income therefrom, then such a rental income falls under the heading of Profits and gains of business or profession . In fact, any other interpretation would defeat the very object of introduction of section 80-IA as well as the scheme which is framed by the Government for development of industrial parks in the country. In that view of the matter, the finding recorded by the appellate authority as well as the Tribunal is in accordance with law and does not suffer from any legal infirmity which calls for interference. Accordingly, the substantial questions Nos.1 and 2 are answered in favour of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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