TaxTMI 
TaxTMI 
TaxTMI 
2013 (4) TMI 263
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....m business or profession" as against the treatment of the same as "income from house property" by the AO." 3. At the time of hearing before us, at the outset, it was pointed out by the learned counsel for the assessee that the tax effect in all these three years is below Rs.3 lakhs as under:- Assessment Year Difference in Tax 2003-04 1,64,061 2004-05 2,30,550 2005-06 1,42,685 4. He, therefore, submitted that the department's appeals should not be admitted in view of the CBDT's Instruction No.3/2011 dated 9th February, 2011. However, we find that in all the three years, common issue is involved and, therefore, the issue in dispute has a cascading effect. In view of the above, we admit the Revenue's appeals and consider the same on merits.....
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....king conditions. The appellant is also responsible for watch and ward of the premises. As it emerges from the statement of Sh. Amanpreet Singh, the agreement between the appellant and M/s Sant Enterprises was never of landlord and tenant and was an agreement between a franchiser and franchisee. It also emerges that supervision over sales proceeds was maintained by the appellant in accordance with the terms of franchise agreement. Under these circumstances and facts, there is no doubt in my mind that the commission earned by the appellant should be brought to tax under the head 'Business and Profession' and not under the head 'Income from House Property'. The decision of the Hon'ble Delhi High Court in the case of Faith Real Estate Pvt.Ltd. ....
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....on due to his pre- occupation in time barring cases. Thereafter, the learned CIT(A) himself summoned Shri Amanpreet Singh, partner of M/s Sant Enterprises and recorded his statement. He, after considering his statement and all the material placed before him, arrived at the conclusion that the franchise agreement was genuine and, therefore, the commission received by the assessee is to be assessed as income from business and not as income from house property. 7. We find that on these facts, the decision of Hon'ble Jurisdictional High Court in the case of CIT Vs. Faith Real Estate (P) Ltd. - 173 Taxman 405 (Del) would be squarely applicable. In that case also, the assessee has given its premises on rent to ER Ltd. There was an agreement betw....