TaxTMI 
TaxTMI 
2012 (10) TMI 1144
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....order for the sake of convenience and brevity. 2. Ground No. 1 of both the appeals involve same issue relating to the disallowance u/s. 14 r.w. Rule 8D of the Act. The issue involved in this ground is squarely covered by the decision in the case of Godrej & Boycee Manufacturing Co. Ltd., Vs DCIT 328 ITR 81. Therefore without going into the merits of the case, we restore this issue back to the files of AO to decide afresh without applying Rule 8D as Rule 8D has been held to be applicable from A.Y. 2008-09. This ground of the assessee is allowed for statistical purposes. 3. Ground No. 3 of both the appeals relate to application of Section 115JB on the disallowances made u/s. 14A of the Act. As the issues involved in respect of disallowances....
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....liance Energy Ltd. now Reliance Infrastructure Ltd. The assessee had disclosed the said rent as income from business and claimed depreciation on the cost of the said premises. This treatment is followed since A.Y. 2003-04 when the property was first let out and in the past the said income was always taxed as business income. The AO has simply changed the head of income without any change of facts during the year. It was contended that rule of consistency should be followed. After considering the submissions of the assessee, the Ld. CIT(A) held as follows: "I have carefully considered the facts of the case. The appellant let out its office building and received the rental income. In my considered view, the appellant was not engaged in any ....
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....s business income and depreciation may be allowed. 8. Per contra, the Ld. Departmental Representative supported the findings of the lower authorities. 9. We have heard the rival contentions and perused the orders of the lower authorities. In the case of Shambhu Investment P. Ltd. v. Commissioner of Income-tax 263 ITR 143 (SC), the Hon'ble Supreme Court has held that income derived from letting out of the property should be assessed as income from house property. The Ld. Counsel's contention that in the earlier year, the rental income has been taxed under the head 'Income from House property' and therefore the same should be followed as per the rule of consistency cannot be accepted for the simple reason that the rule of consistency envisa....