2017 (10) TMI 1419

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..... 2. In its appeal, Revenue has raised the following Grounds of appeal:- (i) "Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred on facts and in law in not upholding the action taken by the AO in treating the rental income from Operating Family Entertainment Center cum Mall and Maintenance Charges amounting to Rs. 12,37,03,004/- and Rs. 4,12,56,372/- respectively as "Income from House Property " against the assessee's claim of ''Profit and Gains from Business or Profession " (ii) "Whether on the facts and in the circumstances of the case and in law, The Ld.CIT(A) has erred on facts and in law in completely ignoring the decision of the Hon'ble Supreme Court in t....

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.... not disputed by the learned DR. In the above background, for the purpose of completeness of the order, the following discussion is relevant. 4. The respondent assessee is a company incorporated under the provisions of Companies Act, 1956, and, interalia, engaged in the business of constructing and acquiring immovable properties and more particularly managing, operating and running family entertainment centre cum malls and shopping complex. The income derived by the assessee from the activity of leasing, licensing of family entertainment centres cum malls / commercial complexes were assessed by the Assessing Officer as rental incomes under the head 'income from house property' as against assessee's claim of assessing such income under th....

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....nue fails in its Ground of appeal Nos. 1 & 2 as above. 7. In so far as the issue raised in Ground of appeal No.3 is concerned, the same relates to interest paid on loan availed by the assessee from HDFC in respect to a property located at Chandigarh. The Assessing Officer following his decision of earlier years, disallowed the interest expenditure. Accordingly, interest paid in respect of Chandigarh property pertaining to current year of Rs. 1,81,97,475/- was disallowed and at the same time he allowed deduction u/s.24(b) of the Act of Rs. 8,69,79,453/- (i.e. Rs. 10,51,76,928/- - Rs. 1,81,97,475/-). 8. The CIT(A) allowed claim of the assessee by noting that the income from lease / rentals was assessed as business income and therefore, ....