AI Drafter 
TaxTMI 
TaxTMI 
TaxTMI 
2011 (2) TMI 1582
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....atisfied. 2. Assessment for the impugned assessment year, of the assessee engaged in the business of running a Technology Park, was completed on 19.11.2008 after scrutiny under section 143(3) of the Act. The loss claimed by the assessee was accepted. The CIT on 28.9.2010 issued a notice under section 263 of the Act as per which, the Assessing Officer had failed to consider whether the income from building taken on lease and let out was to be reckoned as business income or not. Reply of the assessee was that it had taken two properties, namely, Alpha Realty located at North Usman Road, T. Nagar and Lords-I located at Jawaharlal Nehru Road, Guindy for various I.T. companies. As per assessee, two software companies which had booked its spac....
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....a Realty and Lords as also temporary space provided to Hewitt Associates at project site. It was argued by the learned A.R. that ld. A.O. had come to a conclusion on the nature of receipts, after considering the replies of the assessee and had taken a judicious view that the rental income received by it from the lease of the premises was nothing but business income. Therefore, according to learned A.R., the loss was rightfully allowed and the CIT was trying to substitute his view to a lawful view taken by the A.O. 4. Per contra, the learned D.R. strongly supported the order of the CIT. According to him, the assessment order passed by A.O. clearly reflected a non application of mind since there was no discussion regarding how the receipts....
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....company owned but temporarily converted into an IT facility) The first two properties were not owned by the company but taken on lease and fitted out by us for making it fully an IT enabled office, and the third portion, i.e. the car parking of Olympia, as the building was in progress and M/s Hewitt Associates required immediate space for 200 seats; only then, their need for a 1000 seater office in Olympia could take off. As the company did not want to take any further risk in leasing out the outside space and it had converted its car parking space temporarily for the use of M/s Hewitt Associates. All these three premises were fitted out with Network cabling, UPS, Computer Workstations and other items like specialized elec....
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....f. Our Rent Receipts are from the following Parties. PLACE NAME OF THE PARTY AMOUNT IN RS. Alpha Realty Verizon Data Services (India) P. Ltd. 2,83,50,000 LORDS I ABN AMRO Bank 1,19,00,903 OLYMPIA TECHNOLOGY PARK Hewitt Associates 40,39,294 OLYMPIA TEHCNOLOGY PARK Others 99,000 TOTAL 4,43,89,197 Hewitt Associates have occupied 24,625 sq.ft at 'OLYMPIA TECHNOLOGY PARK' itself and they have paid Rent from 12.12.2005 at Rs. 45/- per sq. ft per month. They have occupied the 'OLYMPIA TECHNOLOGY PARK' which is an I.T. Park approved under section 80 IA of the Income Tax. We are enclosing a copy of detailed note explaining how income from I.T.Park is not Income from....
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....om business". In our opinion, just because the assessment order did not mention anything regarding the nature of income of the assessee, would not by itself dilute the claim of the assessee that there was proper investigation conducted by the A.O. When the assessment proceedings were on, the A.O. had issued notice under section 142(1) of the Act and assessee responding thereto had given detailed why its claim of lease rentals were shown under the head "income from business". Thus A.O. had called for necessary information and assessee had furnished the same. No doubt, order of the Assessing Officer, if it had been without application of mind would have been erroneous and prejudicial to the interest of the revenue and mere acceptance of an en....