2016 (10) TMI 1145

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.... Tax Act, 1961 (in short the Act) on 12/03/2013 at an income of Rs. 42,60,440/-. 3. The assessee filed an appeal before the ld. CIT(A), who has allowed the appeal of the assessee, against which, the revenue is in appeal before me. 4. This case was posed for hearing on 01/9/2016, on which Shri A.B. Dangyach attended and requested for adjournment. The same was granted for 18/10/2016. On 18/10/2016, none attended on behalf of the assessee. Ld. DR was heard. After considering the pleadings of the revenue and the material available on the record, this appeal is being adjudicated. In this appeal, the revenue has taken following grounds of appeal: "1. Whether on the facts and in the circumstances of the case and in law the ld. CIT(A....

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....ration, the assessee company has not carried out any business activity as is evident from the P&L account. The only income shown in the P&L account was rental receipt for leasing out its pulverizer to M/s U.M.D.S.P. Ltd.. The assessee claimed that, it has a business income for the reason that the business was closed for temporary lull and the machinery was let out, which was incidental to the business of the assessee. The Assessing Officer after providing opportunity to the assessee by issuing notices, assessed the income as income from other sources. The relevant paragraphs of the Assessing Officer is reproduced as under:-  "2.4 The submissions of the assessee are not found acceptable because of the following reasons:- ....

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....ssessable as income from other sources. g) Section 56 is the residual head in which income not falling in other heads are brought to tax. h) Since, the income received by the assessee is not covered under section 22 or 28 it is to be assessed u/s 56 of the I.T. Act. 2.5 Therefore, keeping in view the above facts, it is held that income earned by the assessee from lease rent is assessable under the head "income from other sources". Similarly, the income received from interest, dividend, sundry balances written off and prior period adjustments is also heated as income from other sources. Hence, total income of Rs. 62,05,761/- declared by the assessee is treated as income from "other sources". Further the Assessin....