TaxTMI 
TaxTMI 
2016 (3) TMI 1016
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....ental income was received by the assessee firm mainly from the following concerns during the year. 1. Standard Chartered Bank, Mumbai 2. Bata India Limited, Calcutta. 3. EDS Electronic Data Systems India (P) Limited, Bangalore 4. Food World Super Market (Spencer) Limited 3. Though the nature of the business of the assessee is shown in the 3 CD report as well as in the partnership deed as "to construct godowns or residential or commercial buildings or flats or commercial shops on the land owned by the firm or by taking land on long lease basis from others and leased out or sale to others, besides conducting tobacco business". The A.O. by noting above he came to a conclusion that the correct head of the income under which the rentals are to be brought to tax is "Income from house property" but not "Income from Profits and Gains of business or profession". He further noted that the assessee has constructed the building on the lands taken on lease belonging to the partners and deriving the rental income and paying leased rental to the partners. Therefore, he is of the opinion that the assessee is the owner of the property and called the explana....
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....) Super builtup area admeasuring 35400 Sq.ft. on the ground floor and 1800 Sq.ft. on the mezzanine floor situated on the land comprised in S.No.1314/1, Madhavaram (V), Ambattur Taluk, Thiruvalluvar District leased out to Bata India Limited, Calcutta for a monthly rent of Rs. 2,92,768. (iii)(a) Office space admeasuring 1973 Sq.ft. at No.4 of the First Floor of the Building "Steeple Reach" situated at No.25, Cathedral Road, Chennai leased out to M/s. EDS Electronic data Systems (India) Pvt. Ltd., at Rs. 1,12,089 per month upto 30.6.2007 and Rs. 1,18,814 per month thereafter. (iii)(b) Office space admeasuring 2029 Sq.ft. at No.6 of the First Floor of the Building "Steeple Reach" situated at No.25, Cathedral Road, Chennai leased out to M/s. EDS Electronic Data Systems (India) Pvt. Ltd., at Rs. 1,15,270 per month upto 30.6.2007 and Rs. 1,22,186 per month thereafter. (iii)(c) Office space admeasuring 1973 Sq.ft. at No.3 of the First Floor of the Building "Steeple Reach" situated at No.25, Cathedral Road, Chennai leased out to M/s. EDS Electronic Data Systems (India) Pvt. Ltd., at Rs. 1,12,089 per month upto 30.6.2007 and Rs. 1,18,814 per month thereafter. ....
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....hat the assessee's case squarely covers by the decision of the Hon'ble Supreme Court in the case of M/s. Chennai Properties and Investments Ltd., Chennai Civil Appeal No.4494/2004 dated 9.4.2015. So far as the decision of the ITAT in assessee's own case is concerned, there is no occasion for the Tribunal to consider the judgement of the Supreme Court and therefore submitted that the latest judgement of the Supreme Court has to be followed and also submitted that the income of the assessee has to be treated as business income. 10. We have heard both the parties, perused the materials available on record and gone through the orders of the authorities below. The assessee is "Sri Bharati Warehousing Corporation" existed by virtue of partnership deed dated 21.1.2000. As per the partnership deed, the object of the firm is "the nature of business is to construct godowns or residential or commercial buildings or flats or commercial shops, etc. on lands owned by the firm or by taking land on long lease basis from others, as mutually agreed upon from time to time, and lease out the same to others". It is also mutually agreed that any other business also may be carried with the mutual cons....
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....ted by the assessing officer himself in his order". The Hon'ble Supreme Court by considering the East India Housing & Land Development Trust Ltd. Vs. CIT (supra) and also the judgement of the Hon'ble Supreme Court in the case of Sultan Brothers Pvt. Ltd. (supra) has held that letting out of the properties is in fact the business of the assessee, assessee therefore rightly disclosed the income under head "Income from business" it cannot be treated as an "Income from house property" and appeal filed by the assessee is allowed. 12. In the present case, the assessee has acquired the land on lease basis in various places i.e. Mumbai, Kolkata, Bangalore, Chennai and constructed commercial complexes and leased out the same to the commercial entrepreneurs such as Standard Chartered Bank, Bata India Limited, EDS Electronic Data Systems India (P) Ltd. and Spencers for a higher rental amount. The intention of the assessee is very clear from the date on which it is existed is to carry out the business activity such as to construct the godowns or residential or commercial buildings or commercial shops, etc. the lands owned by firm or by taking land on long lease from others is the activity o....