Appeals Dismissed for Property Income Assessment; Notional Interest Addition Rejected

The appeals against the orders of the CIT(A)-XIX, Mumbai for A.Ys. 2003-04, 2005-06 & 2006-07 were dismissed. The income from letting out property was assessed under 'income from house property' rather than 'income from business'. The decisions were based on previous Tribunal orders and the Jurisdictional High Court rulings. The revenue's appeal challenging the deletion of addition for notional interest on security deposits was also dismissed. All grounds related to depreciation claims, interest, and maintenance charges were dismissed.

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Issues involved:
The judgment involves appeals against the orders of the learned CIT(A)-XIX, Mumbai for A.Ys. 2003-04, 2005-06 & 2006-07, where the main issue was the assessment of income from letting out property under the head 'income from house property' or 'income from business'.

A.Y. 2003-04:
The Assessing Officer held that income from letting out property should be assessed under 'income from house property', not 'income from business'. The first appellate authority upheld this decision. The assessee's appeal was dismissed based on previous Tribunal decisions and Supreme Court rulings. The grounds related to depreciation claim and interest u/s. 234B and 234C were also dismissed.

A.Y. 2003-04 (Revenue's Appeal):
The revenue's appeal challenged the deletion of addition made on account of notional interest on security deposits. The CIT(A) relied on the decision of the Jurisdictional High Court and dismissed the revenue's appeal based on the principle that notional interest cannot be added to annual rent receipt.

A.Y. 2005-06:
The assessee's appeal for this year was dismissed following the decision in A.Y. 2003-04. The grounds related to the assessment of income and depreciation claim were dismissed. The revenue's appeal for the same year was also dismissed based on the Jurisdictional High Court order.

A.Y. 2006-07:
The assessee's appeal was dismissed following the decisions in earlier appeals. The issue of maintenance charges was not pressed due to the small amount involved. The grounds related to interest u/s. 234B & 234D were dismissed. The revenue's appeal for this year was also dismissed based on the Jurisdictional High Court's decision.

Conclusion:
All appeals were dismissed, upholding the assessment of income from letting out property under 'income from house property'. The decisions were based on previous Tribunal orders and the rulings of the Jurisdictional High Court.

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