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<h1>Petition dismissed: factory building rent classified as business income, consistent assessment since AY 1984-85; no costs ordered</h1> HC dismissed the petition, upholding the Tribunal and CIT(A)'s conclusion that rental income from the factory building is income from business rather than ... Classification of rental income from a factory building as either 'income from business' Or 'income from house property.' - Held That:- The Tribunal found that in all the earlier years starting from the assessment year 1984-85, the income derived by the assessee from the factory building had been treated as income from business by the Assessing Officers themselves. Observing that no distinguishing feature had been pointed out in the present year, the Tribunal affirmed the view taken by the Commissioner of Income-tax (Appeals). In the present case, learned counsel for the Revenue has not been able to point out even a single distinguishing feature in respect of the assessment year in question which could have prompted the Assessing Officer to take a view different from the earlier assessment years, in which the same income was brought to tax as income from business. The petition is accordingly dismissed with no order as to costs. Issues involved: The issue involves the classification of rental income from a factory building as either 'income from business' or 'income from house property.'Summary:The petition under section 256(2) of the Income-tax Act, 1961 was filed by the Revenue seeking a direction to the Income-tax Appellate Tribunal to refer a question regarding the classification of rent received from a factory building. The Assessing Officer initially treated the income as 'income from house property,' but the Commissioner of Income-tax (Appeals) and the Tribunal considered it as 'business income' due to the assessee carrying on business activities in the premises.The Tribunal noted that in previous years, the income from the factory building had consistently been treated as business income by the Assessing Officers. Without any distinguishing features presented for the current assessment year, the Tribunal upheld the treatment of the income as business income. The court emphasized the importance of consistency in such matters unless there is a material change in facts.The court, after hearing arguments from both sides, found no reason to question the Tribunal's decision. It was highlighted that for the sake of consistency, the same treatment should continue unless there are significant changes in circumstances. As no distinguishing features were identified for the current assessment year, the petition was dismissed with no costs imposed.
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