TaxTMI 
TaxTMI 
2020 (4) TMI 585
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....e AR of the assessee attended and furnished the relevant information as called for. The assessee company is engaged in the business of boat pleasure cruising and renting out of premises and other assets. During the year, assessee's main source of income includes rental income, interest income and agricultural income & sale of fixed assets. The assessee has declared income from house property of Rs. 1,44,00,100/- and claimed deduction u/s 24(a) of the Act @ 30% at Rs. 43,20,030/-. On perusal of the previous year assessments, AO noticed that assessee has declared the rental income under the head 'Business Income' till A.Y. 2009-10. Further, he observed that there was no change in the business activity of the assessee company during the A.Y. 2010-11. The same was put forth before the assessee to substantiate by the AO. In response, AR of the assessee company vide its letter dated 30.03.2016 stated as under:- The assessee had received rent income from letting out -property and infrastructure. In all the years preceding AY 2010-11 the assessee was showing the same as income from business. The assets which were let out were business assets acquired and setup by us for the p....
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....limited company, a firm, a HUF or individual. Annual value of property is assessed to tax under section 22 in the hands of owner even if he is not in receipt of income or even if income is received by some other person. Further, the word "business" has been defined in section 2(14) of the Income Tax Act, 1961 to include any trade, commerce or manufacture or any adventure or concern in the nature of trade, commerce or manufacture. This definition, being an inclusive one, is indicative of an extensive and expanded meaning rather than a restricted or narrow meaning. In view of this, the activities which may amount to business need not necessarily be by way of trade, commerce or manufacture, or be in the nature of a profession. They may even consist of rendering of services as in the case of selling agents, managing agents and these services may be of a variegated character. Hence we would like to submit that the income will chargeable as per its nature. Now coming to our case, during the year under consideration the company has provided its entire facility on rent upon which the company has absolute ownership. Since, in Income Tax Act specific heads have been provided and the in....
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....current assessment year. Similarly details of repairs and maintenance and other expenses on these assets were called from A. Y. 2004-05 till date. The appellant did not furnish the information called for in the appellate hearing held on 17/07/14. A statement was filed on 28/08/2014 from which it was not clear and it is not verifiable what are the assets of the marine training institute and what are other assets. The working for instance does not show the furniture and fixtures as part of assets leased out which is clearly incorrect. It is seen that depreciation amounting to Rs. 56,30,558/- is claimed between AY 2006-07 to AY 2009-10. From the copy of the Tax Audit Report filed for A.Y. 2010-11 it is seen that the Auditor in Item 8B has mentioned that there is no change in the business of the appellant company. From the depreciation schedule forming part of the Tax Audit Report it is seen that the appellant has continued to claim the depreciation on all the assets and has not excluded any asset now claimed to be assets from which income from property is claimed. It is also noted that in the instruction given in DOS order no. 1 of 2003 dated 15/01/2003, it was mentioned in Para 1.4.2....
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....nd DR has not objected to the same, therefore we admit the additional evidence submitted by the assessee. 8. Before us, Ld. AR brought to our notice page 1 of the additional evidence which is Object Clause of the Memorandum of Association and submitted that the main object of the company is to carry business of running and conducting maritime training center and related services. The other incidental and ancillary object which contain earning of rental income /lease income. Ld. AR further brought to our notice at page no. 3 of the order of ITAT in ITA No. 7086/Mum/2014 for AY 2010-11 and submitted that ITAT has dismissed the appeal of the assessee with the following observations:- 11. No details were furnished by assessee till 17/07/2014. Some statements regarding the queries raised by ld CIT(A) were filed by assessee on 28/08/2014, from which the facts were not verifiable as to which are the asset used for Marine training. The ld CIT(A) concluded that assessee company executed two agreements, one in respect of buildings and other in respect of furniture and fixture. The assessee company derived the benefits claiming depreciation all the years and now has changed the head the in....