TaxTMI 
TaxTMI 
2011 (6) TMI 923
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.... properties are to be taxed under the head business income disregarding the decision of Apex Court in the case of M/s. Shambu Investment, 263 ITR 143. 2. On the facts and in the circumstances of the case and as per law, the Ld.CIT(A) has erred in directing to allow expenses and depreciation claimed under the head business income though the rental income as stated in Ground No.2 is to be assessed under the head income from House property wherein the question of allowing expenses and depreciation would not arise." 2. We have heard the arguments of both the sides and also perused the relevant material on record. The learned representatives of both the sides have agreed that the issues involved in the present appeal are squarely covered in f....
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....ing the stand in different assessment years. The observation extracted by the Hon'ble Supreme Court in this judgment and appearing at page 328 of the journal reads as under: "A Full Bench of the Madras High Court considered this question in T.M.M. Sankaralinga Nadar and Bros. v. CIT (1929) 4 ITC 226. dealing with the contention the Full Bench expressed the following opinion (p.242) The principle to be deduced from these two cases is that where the question relating to assessment does not vary with the income every year but depend on the nature of the property or any other question on which the rights of the parties to be taxed are based, e.g. whether a certain property is trust property or not, it has nothing to do with the fluctuations ....
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....s then AO is not supposed to assess such income all of a sudden as income from house property in one of the year in isolation. The other decisions cited by the assessee supra are also on the same line. The ld. Counsel for the assessee has demonstrated that this is the only assessment year in which rental income has been assessed as income from house property, otherwise in earlier assessment years as well as in subsequent assessment years i.e. A.Y. 1998-99 to 2000-01 such income has been assessed as business income. He demonstrated that after a gap of 3-4 years then again A.Y. 2001-02 the A.O. has assessed the income under the head house property. We find that in this assessment year i.e. 01-02 there is no change of facts and circumstances b....