TMI Blog2009 (6) TMI 49X X X X Extracts X X X X X X X X Extracts X X X X ..... m other sources' – Held that income from leasing of the hospital can be assessed only as income from other sources – decided in favor of revenue – ITAT order upholding the order of AO maintained. - 321 of 2009 and 1 of 2009 - - - Dated:- 29-6-2009 - F. M. IBRAHIM KALIFULLA and B. RAJENDRAN, JJ. T.C. (Appeal). No. 321 of 2009 and M.P. No. 1 of 2009 Mr. K. Venkatanarayanan for Subbaraya Aiyar Padmanabhan, for the appellant. Mr. Haja Nazirudeen, Special Govt. Pleader (Tax), for the respondent. JUDGMENT The Judgment of the Court was made by B. RAJENDRAN, J. - The assessee has preferred the appeal against the order passed by the Income Tax Appellate Tribunal, in ITA.No.2323/Mds/2004 dated 15.9.2006. 2. (i) The a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... judgment of this Court reported in 266 ITR 685 ( COMMISSIONER OF INCOME TAX V. CHENNAI PROPERTIES AND INVESTMENTS LTD. ,)following the Apex Court judgment reported in 237 ITR 454 ( UNIVERSAL PLAST LTD V. CIT )came to the conclusion that the income from leasing of the hospital can be assessed only as "income from other sources" and set aside the order of the C.I.T.(Appeals) and restored the order of the Assessing Officer in this regard. At the same time, the Tribunal also gave a finding in favour of the assessee that even though the lease income could be treated as income from other sources, as regards the deductions in respect of the losses from out of the lease income was still permissible under law as per the decision reported in 259 ITR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itions of the agreement, it clearly shows that the assessee company had no intention to take back the leased premises and run the hospital on its own. Thus, respectfully following the decision of the Hon'ble Apex Court in the case of ( UNIVERSAL PLAST LTD., Vs. CIT ) (supra), we hold that income from leasing of the hospital can be assessed only as income from other sources and thus we set aside the order of the Id. CIT (Appeals) and restore that of the Assessing Officer." Further, the Tribunal has also given a clear finding that even if the Hospital basically remains a business asset, as per the ruling of this Court reported in 259 ITR 26 (supra), the business loss carried forward can be set off against dividend income from the shares hel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the judgment of the Supreme Court cited supra has categorically held that the lease of the building can be adjusted with the carry forward business losses even against the head income from other sources. The finding given by the Tribunal "as income from other sources" is consistent, correct and legal and we are convinced by the finding of the Tribunal. We find no reason to set aside the order of the Tribunal insofar as the finding related to the income being treated as "income from other sources." 6. Apart from this, the question of law which is sought to be raised by the appellant in this appeal does not deserve any consideration as the very question has been already decided by this Hon'ble Court in the decision reported in 266 I.T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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