2013 (8) TMI 1005

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....dings under sec.143(3) read with sec.147 of the Income Tax Act, 1961 (in short the Act), Appeal No.158/2010-11 and Nos.152/2010-11 both dated 14.03.2011, in proceedings under sec.143(3)(3) read with sec.254 and sec.143(3) of the Act respectively. 2. In the course of hearing, the Revenue first of all clarifies that the main issue sought to be raised in all these appeals is as to whether the receipts in question raised by the assessee in lieu 'incubation' facility provided to M /s. Accenture Services (P) Ltd. is liable to be treated as 'business' income as per the assessee or from 'house property' as held by the Assessing Officer. Its further submission is that in the assessment year 2005-06 only, there is one more issue of current repairs u....

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....On 13.10.2005, it had filed its return of income disclosing loss of Rs. 4,26,38,324/-. We notice from the case that the relevant assessment order has been passed by the Assessing Officer on 29.12.2008 under sec.143(3) read with sec.147 of the Act. However, no facts are forthcoming as to whether the assessment had earlier been finalized by the Assessing Officer under sec.143(1) or 143(3) of the Act. Still, it is evident to us that in the proceedings under sec.147 of the Act, the Assessing Officer came across assessee's receipts of Rs. 1,18,86,000/- raised from M /s. Accenture Services (P) Ltd. in lieu of providing incubation facilities in furtherance to agreement arrived at between them. There is no quarrel on factual position that the asses....

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....re Services (P) Ltd. (sub lessee). Then he has taken into consideration the nature of the 'incubation' facility provided by the assessee and holds that the lease agreement is a business transaction resulting in 'business' income. At the same time, qua other contentions of the assessee regarding the expenses (supra), the Commissioner of Income Tax (Appeals) has held that the same are in the nature of current repairs allowable as deduction. While directing the Assessing Officer to allow the revenue expenses, he further observes that those items of expenses which are not in the nature of current repairs, have to be capitalized under the appropriate heads. It is in this backdrop of facts that the Revenue is aggrieved. 7. First we come to the....

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.... incubating facilities to its lessee. The question sought to be raised by the Revenue is that since the assessee is not the owner of the building, it is not entitled for the claim in question. From the case law cited by the assessee of M/s. Thiru Arooran Sugars Ltd. (supra), it is evident to us that the same issue of current repairs undertaken by a lessee in a rented property and its allowability had arisen and the hon'ble jurisdictional high court has decided the issue as under:-   "3. Learned counsel appearing for the assessee placed reliance on the decision of this court in CIT v. Ayesha Hospitals (P.) Ltd [2007] 292 ITR 266(Mad.), wherein in respect of the claim made for the assessment year 1991-92, the assessee claimed the am....