TMI Blog2013 (11) TMI 1794X X X X Extracts X X X X X X X X Extracts X X X X ..... scrutiny and notice under Section 143(2) was issued on 12.10.2004. The assessee has shown a sum of Rs. 28,11,600/- rent received as part of income from business and depreciation has been claimed in respect of the house property. The assessing authority held the said income needs to be assessed as part of income from 'house property' and depreciation in respect of house property is not allowable. Aggrieved by the said order, the assessee preferred an appeal to the Commissioner of Income-tax (Appeals). The appellate authority held that the income arose from exploitation of the commercial assets of the assessee and therefore, it should be assessed under the head business and the depreciation be allowed in respect of the building at t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee. In fact, such a benefit was conferred on the assessee for the previous years. Assuming that it is not a business income, then it has to be treated as income from other sources and certainly not the rental income and therefore, she submits a case for interference is made out. 4. The property which is the subject matter of lease as set out in the Lease Deed reads as under: All that piece and parcel of the premises in the second and fourth floor (Terrace) of the building known as Samrah Plaza situated at 42, St. Marks Road, Bangalore-560 001 measuring super built-up area of about 15,832 sq. ft. namely, the premises at second floor measuring about 8,240 sq. ft. and fourth floor measuring about 7,592 sq. ft. together with fixture ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed car parking space in the basement floor of the said building. 7. Admittedly, the assessee is not in the business of constructing buildings and letting out the same. They are also not in the business of furnishing these buildings and letting out the same. The only business of the assessee is the development of software. The schedule premises is owned by them. When they do not need the schedule premises they let out the premises, so that it could earn some rental income. Therefore, the Tribunal rightly held that it is not a business income but it is an 'income from the house rental'. The contention that even if it is not a business income, it has to be treated as 'income from other sources' is without any substance becau ..... X X X X Extracts X X X X X X X X Extracts X X X X
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