2014 (2) TMI 174

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....eal contesting its assessment u/s.143(3) of the Income Tax Act, 1961 ('the Act' hereinafter) for the assessment year (A.Y.) 2007-08 vide order dated 03.12.2009. 2. We may take up the assessee's appeal first, i.e., in the order the two appeals were heard by us. The principal issue arising in the assessee's appeal, projected per its first three grounds, is the head of income under which the hire charges on the operation of a commercial complex, being at Rs.452.32 lacs for the current year, is to be assessed, i.e., either as 'income from house property' or as 'business income'. Explaining the assessee's case, the ld. Authorized Representative (AR), the assessee's counsel, would submit that the issue is covered in the assessee's favour by th....

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....larified by the apex court per its constitution bench decision in the case of Sultan Brothers (P.) Ltd. vs. CIT [1964] 51 ITR 353 (SC), the law does not draw any distinction on the basis of the nature of the letting, i.e., commercial or otherwise. A thing is not by its very nature a commercial asset. An asset, when it used for business, may be described as so, and business could be carried out with practically all things. As such, there is no basis in law for holding an income to be from business under the Act on the basis of commercial exploitation of a house property on it being let. So however, at the same time, the law itself, per section 56(2)(iii), provides for a composite letting, i.e., involving machinery, plant, furniture and fixtu....

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....ings that the tribunal has rendered its decision, for which reference is made to paras 14 & 15 of its order for A.Y. 2001-02 (supra), which in fact stand reproduced in its subsequent order for A.Y. 2004-05 (supra). No infirmity in the said findings has been brought to our notice. That the same continues to obtain for the current year as well stands abundantly clarified by the orders of the authorities below, to which reference was drawn during hearing. Under the circumstances, we find no reason for any change in the consistent view adopted by the tribunal, which on facts appear to be consistent with the law as explained in the case of Sultan Brothers (P.) Ltd. (supra) inasmuch as we have, in view of the undisputed parity of facts, not exami....