2011 (4) TMI 1160

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....and has held that the income from rent of the assessee's property in question should be treated as business income.   2. Before we proceed further, we would like to state that the matter was earlier taken up on February 3, 2011, and it was adjourned in the presence of the learned counsel for the parties. It was taken up on April 11, 2011, and was heard in part, and has been taken up again today. Learned counsel for the respondent has been absent on both these occasions.   3. The appellants have framed the following substantial questions of law :   "(1) Whether, on the facts and circumstances of the case, the Tri- bunal has erred in law in reversing the order of the Commissioner of Income-tax (Appeals) and holding ren....

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....indicated. The present appeal is with respect to the assessment year 1996-97. The assessee is a company and owns flats in a multi-storied com- plex known as "Kumar Tower", Boring Canal Road, in the township of Patna. The assessee let out the same to others on monthly rental. It sub- mitted returns showing the rental income from business. Learned Assessing Officer did not accept the return, and assessed the same as income from house property within the meaning of section 22 of the Act, by order dated August 4, 2003, passed by the learned Assistant Commissioner of Income- tax, Circle II, Patna. Aggrieved by the order, the assessee preferred an appeal which was dismissed by the learned Commissioner of Income-tax (Appeals)-II, Patna, by order d....

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....ted as income from house property, except those which are in occu- pation of the assessee itself for the purpose and is being used for business or profession. In the present case, admittedly the property is not in the possession of the assessee, let alone the question of doing any business there, and has let out the same to others for rent. We are clearly of the view that income from the property in question has to be taxed under the head "Income from house property". We are, therefore, of the view that the learned Tribunal has erred in holding the income from the property in question has to be treated as income from business. We agree with the orders of the learned Assessing Officer, which has been rightly upheld by the learned Commissione....