2009 (1) TMI 842

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.... the Tribunal had misdirected itself in law in deleting addition of Rs. 18 lakhs made by the Assessing Officer as income from other sources. 3. In order to deal with this appeal the following relevant facts are required to be noted:- "The assessee, which is a company, was carrying out medical and clinical research for which purpose it set up a super speciality hospital by the name of Fortis Heart Institute. An agreement dated 1-4-2000 (hereinafter referred to as 'agreement' was executed between the assessee and the sister concern, namely, Speciality Ranbaxy Limited (SRL). The Agreement envisaged that the assessee and SRL would share expenses of maintenance of corporate office which was used by the assessee, as well as, SRL. The mainte....

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....payment as no part of it had income embedded in it. 5. The Assessing Officer held that assessee had received professional charges for which TDS had been deducted by SRL. With these findings the Assessing Officer concluded that sum of Rs. 18 lakhs received by the assessee from SRL during pre-operative period was to be treated as income from other sources. Accordingly, the Assessing Officer made an addition of a sum of Rs. 18 lakhs under the head income from other sources. 6. The assessee being aggrieved preferred an appeal to the CIT(A). The CIT(A) by an order dated 24-12-2004 allowed the appeal with respect to the issue in hand and deleted the addition made by the Assessing Officer. The CIT(A) in its order returned a finding of fact t....