2012 (7) TMI 952

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....nvolved, these appeals are being disposed off by this common order for the sake of convenience. 2. Effective grounds of the Revenue, identical in these three appeals, read as follows- 1) The order of the Ld. CIT(Appeals) is erroneous both on facts. 2) The Learned. CIT(Appeals) has erred in admitting additional evidence without granting any opportunity to the AO as requried under Rule 46A of the Income Tax Rules. 3) The Learned. CIT(A) has erred in treating lease rental income as business income and in allowing expenses without any evidence being produced by the assessee. " Thus, while the main dispute involved in these appeals relates to the head under which lease rental income of the assessee is to be assessed, viz. under th....

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....rly, lease rent of Rs. 60,00,000 for the lease period of 1.1.2007 to 31.3.2008, and lease rent of Rs. 55,00,000 received by the assessee form M/s. Hariyana Steel Centre for the assessment years 2008-09 and 2009-10 respectively, have been brought to tax under the head 'other sources', as against the assessee's claim for assessing the same under the head 'business income'. 4. On appeal, the CIT(A), on consideration of the elaborate submissions of the assessee before him, in the light of the case law on the point, accepted the contention of the assessee and held, following the decision of the Apex Court in the case of Universal Plast Ltd. V/s. CIT(2378 ITR 1454), that the in the facts of the present case, the lease rental received by the as....

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...., in support of his action to bring to tax the lease rental income of the assessee under the head 'other sources' relied on the TDS certificates issued by the lessee, Hariyana Steel Centre, which were issued in terms of S.194-I of the Act, showing the income under the head 'rent'. But for the reliance on the said TDS certificates, the assessing officer has not made any serious effort to ascertain the intention behind the leasing out of the assets, nexus of the business of the assessee with the exploitation of the assets, and composition of the total income of the assessee, and such other factors which clinch the issue relating to determination of the head under which the lease rental is assessable. In the appellate proceedings, the assessee....