TaxTMI 
TaxTMI 
2019 (1) TMI 685
X X X X Extracts X X X X
X X X X Extracts X X X X
.... law, the Ld. CIT(A} was justified in allowing the income under contention, as income under the head "Profits and Gains of Business or Profession" instead of "Income from House Property" as considered by the AO without appreciating that the decision of Hon'ble Supreme Court in the case of Chennai Properties & Investments Ltd. Vs. CIT (2015) 373 ITR 673(SC) is not applicable to the facts of the assesses as the assessee is in the business of manufacturing of engineering goods during the financial year under consideration. 2. The appellant prays that the order of the Id. ClT (A) on the grounds be set aside and that of the Assessing Officer be restored. 3. The appellant craves leave to add, amend or alter all or any of the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he claim of rental income of the assessee as income from business or profession instead of income from house property. Before going further, we deemed it necessary to advert the finding of the CIT(A) on record.: - "11 I have considered the submissions of the appellant carefully. The profit and loss account shown for current and preceding year is summarized below. A.Y. 2012-13 AY 2011-12 Revenue from operations 216,00,000/- 216,00,000/- Other Income 540,587/- 904,590/- Total Revenue 221,40,587/- 225,04,590/- Employee costs 71,64,519/- 63,19,432/- Finance costs 3,69,908/- 13,13,361/- Depreciation and amortization 11,36,294- 16,62,591/- Other Expenses 1,32,25,....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ses such as salary expenses, travelling and other administrative expenses are incurred. 14. There is merit in the contention that merely because the licensee deducts TDS u/s 194I, it does not determinative of the head under which the income is to be assessed in the hands of the licensor. It only means that the nature of payment is of rent and not that it has to be assessed as house property income. 15. While the office/factory building was to be demolished before development, the appellant to exploit the property temporarily let out the premises as per agreement of leave and license dated 17.04.2009 with Booker India Pvt. Ltd. (Booker). The purpose is not letting out of property but rather exploiting it commercially till t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nd the remaining income in sum of Rs. 1,19,73,405/- was treated as income from house property and accordingly taxed. Initially the business of the assessee was of the manufacturing of engineering goods/components/spares which was discontinued since many years ago. Thereafter, the assessee changed its business for development of real estate. The assessee converted its land into stock in trade w.e.f 07.08.2008. Schedule 8 on the balance-sheet shows Rs. 109,94,65,193/- as inventory of property. The assessee entered into the development agreement with Rajesh Real Estate Development P. Ltd. on 12.07.2010 for the development of the land. Earlier the assessee also agreed to alienate the larger portion of the land to Rajesh Estate and Nirman ....