TaxTMI 
TaxTMI 
2005 (12) TMI 267
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the main issue is identical in all these three appeals, they are disposed of by this consolidated order. 3. The brief facts of the case are that during the course of assessment under section 143(3) read with section 147, the Assessing Officer observed that in the return of income, the assessee-firm has mentioned the nature of business as General Merchant and Warehousing charges and JCB Loader Hire Charges. He contended that income from warehouse is income from house property. According to him, it makes no difference whether the objective is to carry on business or get rental income. He has contended that there is no business like warehousing. The Assessing Officer has referred to various TDS certificates issued by the parties from whom th....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... has not disputed the fact that the assessee rents out part of the warehouse premises to various business units, charges rent on the basis of area occupied, takes insurance for the building, possesses the key, provides various services such as lighting, telephone, security and management of loading and unloading etc. 5. We have considered the rival contentions, carefully gone through the orders of lower authorities and deliberated upon the case laws cited by the ld. Authorised Representative and Departmental Representative at bar, and also the case laws discussed by the lower authorities in their respective orders, with reference to factual matrix of the instant case. From the record we found that the assessee was providing storage facilit....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... property'. In case it is found that the main intention is to exploit the immovable property by way of commercial activities, in that event it must be held as 'business income'. In the instant case, we found that services rendered by the assessee were the result of its activities carried on continuously in an organized manner with a set purpose and with a view to earn profit. Hence, all these activities were in the nature of adventure in the nature of trade, therefore, liable to be assessed as business income and not as income from house property. Whether a particular letting is business has to be decided in the circumstances of each case. Each case has to be looked at from businessman's point of view to find out whether the letting was doi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ssessment year 1995-96, a revision proceedings initiated under section 263 was dropped by the CIT on the ground that warehousing income was business income and the partners of the assessee-firm was therefore, eligible for remuneration on the basis of income/profit of warehouse. Furthermore, in the assessment year 1996-97, in an order passed under scrutiny assessment under section 143(3), the Assessing Officer allowed assessee's claim for business income in respect of income generated on providing space in the warehouse. Furthermore in the assessment year 1998-99 also, the warehouse income was accepted by the department under section 143(3) as business income. There is no dispute to the fact that strict rule of doctrine of res judicata does ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....firm. Applying the principle of consistency hereinabove, we do not find any merit in the action of Assessing Officer for changing its conclusion during the year under consideration without any change in the facts and circumstances as compared to the earlier years. Undisputedly in the instant case, the assessee was deriving business income from the regular and systematic activity carried on in organized way in the field of "warehousing". As per the terms of the partnership deed one of the business to be carried on by the assessee-firm was warehousing, the assessee was providing services like electricity, telephone, watchman, staff for managing loading and unloading of goods and keeping a watch on these goods stored in the warehouse along wit....