2004 (8) TMI 634

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..... Jain, Judicial Member. - In this appeal, the assessee pleads that the learned CIT(A) has erred in confirming assessment of income under the head "House Property" instead of "Business Income" without properly appreciating the assessee's submissions that the property has been given on leave and licence basis for a period of three years with a view to exploitation of business assets. It is prayed t....

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....temporarily. The Assessing Officer, however, assessed the income of the building at Rs. 5 lakhs as "income from house property" and allowed deduction of Rs. 1,25,000 under section 24(i). The learned CIT(A) confirmed the order. 3. The facts have not been disputed. The only factor which weighed against the assessee seems to be that the assessee had also disposed of its plant and machinery. The CI....

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....is no stopping the assessee from buying new plant and machinery. Merely because, the plant and machinery have been disposed of it cannot be said that the assessee has stopped its business. Reliance has been placed on the following case law : (i) CIT v. Vikram Cotton Mills Ltd. [1988] 169 ITR 597 (SC) (ii) CIT v. Malabar & Pioneer Hosiery (P.) Ltd. [1996] 221 ITR 117 (Ker.) (iii) CIT v. V.....

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...." (supra), the assessee was engaged in manufacturing of goods had let out its shed. The finding of the Tribunal that rental income constituted income from business, was held by the Kerala High Court to be justified. Here again, the facts are not pari materia. There, the question of selling of plant and machinery was not involved. 7. In "VST Motors (P.) Ltd." (supra), commission was paid by the ....