2017 (7) TMI 1070

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....d of appeal of assessee stands dismissed as not pressed. 3. The other effective ground nos. 1 to 3 are against the action of the Ld. CIT(A) in not allowing the claim of the assessee that income which it derives from letting out of property as business income, whereas the Ld. CIT(A) confirmed the action of the AO wherein he held it as income from house property. The assessee is a Private Limited Co. incorporated on 14.03.1972. Its main object for which it was established us seen from clause 3 of Memorandum of Association which is as under: (1) To acquire on a license or by purchase, lease, exchange, hire or otherwise lands and property of any tenure, or premises in any part of India; (2) To license or sub-license or leas....

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....ome in its own right and as such the said rental income has rightly been assessed by the Assessing Officer as income from house property u/s 22 of the Act and not as business income as claimed by the assessee. Accordingly, we vacate the order of the Ld. CIT(A) by allowing the grounds of appeal taken by the Department and confirm the order of the Assessing Officer." 5. Following the said order of the Tribunal the Ld. CIT(A) confirmed the order of the AO treating the contribution from the shop as income from house property and the claim of the assessee that the income is from business income was rejected. Aggrieved by the aforesaid order of the Ld. CIT(A), the assessee is before us. 6. We have heard rival submissions and gone through fa....

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....ng out of properties after perusal of the lease deed which we find to be identical to that of the Bombay Plaza Pvt. Ltd. wherein also that assessee took license from the East India Hotels Ltd., which fact is evident from page 10 and 11 of that order. Taking note of these facts, the Tribunal has been pleased to come to the conclusion that the assessee carried on a systematic and regular activity in the nature of business by letting out premises on rent and, therefore, the income from granting sublicense was to be assessed under the head income from business. We note that in the assessee's case for AY 2005-06, the order of the Tribunal is dated 23.07.2010 whereas the Hon'ble Supreme Court's decision in Chennai Properties & Investment Ltd., su....