2017 (11) TMI 1855

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....appreciating the fact that the rent was received by the assessee from owned property and, therefore, it was rightly assessed as income from house property." 2. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in deleting the disallowance made of Rs. 44,33,656/-without appreciating the fact that the rent received was income from house property."" 2. The brief facts of the case are that the Assessing Officer noted that the assessee is engaged in the business of purchase and sale of real estate. During the year the assessee had no business receipts except the rental income of Rs. 9 lacs and profit on sale of fixed asset amounting to Rs. 39,95,528/- however, it has claimed expenses amounting to Rs. ....

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....1.2 of the submission made the appellant had claimed that the facilities such as house keeping, security, telephone, electricity, maintenance etc.and rendering such facilities are embedded in the rent receipts..-- Since the source of income emanates from the business asset the rent received need to be held as business receipt. In view of this, the conclusion drawn by the: AO that the rental income needs to be assessed under the head 'Income from house property' cannot be upheld: The ground raised is Allowed. .... ... 3.3 I have carefully considered the submission and the finding of the AO in the impugned order. It is the contention of the appellant that it is engaged in the business of rendering various fa....