2015 (11) TMI 1359

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....AYs 2006-07 and 2008-09 vide its separate orders dated 31.12.2008 and 13.12.2010 respectively 2. First we take up ITA No. 1065/K/2012 for AY 2006-07. The only issue in this appeal of revenue is against the order of CIT(A) in treating the rental income as income from house property. For this, revenue has raised following ground no.1: "1. That on the facts and in the circumstances of the case, the Ld. CIT(A) has erred in treating the rental income derived by exploiting the stock in trade/work-inprogress as income from house property." 3. Briefly stated facts are that the assessee declared total loss amounting to Rs. 20,88,554/-. The bifurcation was that business loss of the assessee was Rs. 28,57,569/- and income from house property at R....

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....s have been let out, as per the agreement, it could not be said that the said flats have been let out only for a short period. We are of the considered view that the assessee has let out those flats as an owner to exploit the income from those flats as owner of the assets. Therefore, the above decision of the Hon'ble Madras High Court as well as the decision of the Hon'ble ITAT, Gauhati Bench (supra) squarely apply to the case before us. Accordingly, we hold that the rental income realized by the assessee is the income from house property and is to be assessed under the head "income from house property". Therefore, we uphold the orders of the Ld. CIT(A) by rejecting the grounds of appeal taken by the Department for both the assessme....