TaxTMI 
TaxTMI 
2007 (10) TMI 458
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....under section 143(3) read with section 147 of the Act, which was illegal and bad in law. 2. The learned CIT(A) ought to have held that the notice issued under section 148 of the Act is bad in law. The Assessing Officer has not complied with the mandatory requirement for assuming jurisdiction under section 148 of the Act. 3. The learned CIT(A) has erred in law and in facts in upholding the order of the Assessing Officer assessing the income from service charges under the head 'income from house property' as against the claim of the appellant for assessment thereof under the head 'business income'. 4. Without prejudice to the above, the learned CIT(A) ought to have considered and allowed various expenditure incurred by the appellant ....
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....t to M/s. Sriman Petrochemicals Ltd., M/s. Sriman Organic Chemical Pvt. Ltd. and M/s. Sriman Corporation, respectively. All these concerns are the sister-concerns of the assessee-firm. As per the assessee, it was conducting the business service centre in the premises, wherein the assessee-firm used to provide infrastructure facilities like electronic instruments and gadgets, air-conditioners, Epbx systems, telephone instruments, telefax etc. On going through various agreements filed by the assessee, it was found that the assessee, in fact, had given on rent the entire building to its sister-concerns. The assessee had entered into various agreements with various sister-concerns so as to give colour of providing services to the tenants. The t....
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....ase of CIT v. Shambhu Investment (P.) Ltd. [2001] 249 ITR 47 , held that merely because the income is attached to any immovable property, that cannot be the sole factor for assessment of such income as income from property. If the main intention of the assessee is to let out the property or any portion thereof, the income must be considered as rental income or income from property, whereas if the primary object is to exploit the immovable property by way of complex commercial activities, in that event it must be held as business income. 4.1 As we have already discussed earlier that the assessee has given office space along with the infrastructure facilities like electronic instruments and gadgets, air-conditioners, Epbx systems, telephon....
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.... of the property providing some more value added services through the medium of a common service provider. The assessee is collecting charges for various services rendered from the occupants of the premises from time-to-time and making payments to the service provider against the bills raised by it. Therefore, providing of the services by the assessee to various clients is a service by the assessee to various clients is a separate business different from letting out of the property as such. The letting portion could be treated as a business. Likewise, it is not possible to accept the contention of the revenue that the entire income should be treated as income from house property for the reason that it would amount to ignoring the relevant a....