TaxTMI 
TaxTMI 
2019 (3) TMI 1877
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....wing grounds of appeal and additional grounds of appeal, which are common in both the appeals under consideration: "1. On the facts and circumstances of the case, the learned Commissioner of Income-tax (Appeals) - 10, Hyderabad ought not to have dismissed the appeal. 2. The learned CIT(A) ought to have held that the reassessment proceedings initiated by the Assessing Officer are not valid in the eye of law for the reasons that: (a) There are no reasons to believe that the income got escaped assessment from tax; (b) For the reason that the Assessing Officer had failed to furnish the reasons recorded for issuance of the notice under section 148 of the Act, despite the request made by the Appellant. ....
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....er to provide the equipment and furniture, assessee has taken loan from bank and the relevant interest was charged to P&L A/c as business expenditure. In the earlier assessments, AO has rejected the claim of the assessee and treated the consolidated receipt of rent and hire charges as income from house property. The same view was upheld by the coordinate bench. Assessee preferred an appeal before the High Court. 6. Similar issue was raised by the assessee in the appeal for the AY under consideration. Meanwhile, assessee is declaring the hire charges as business income and claimed the relevant interest on loan as business expenditure. Since, the authorities have treated the hire charges as part of rental income, they also rejected the int....
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....the assessing officer is justified in going beyond the documents to find out real intention of the parties by ignoring the apparent has to be and has always been conceded. In this circumstance, the assessing officer has to remove the façade to expose the real intention of the parties cleverly cloaked and the actual agreement cannot be given effect. The only bona fide document to be acted upon not otherwise. There is a serious doubt and also it is shocking the conscious of the Bench, whether the assessee is getting hire charges equal to the rental amount for providing amenities. It cannot be real one and assessing officer required to see the actual rental value of the property in that place and bring that amount into tax under the hea....
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....ng in the present case, plant and machinery or furniture was not hired by the assessee along with the building. Therefore, the decision of the apex court in Sultan Bros case supra, will not be applicable to the facts of the present case. Thus, on a plain reading of sec.56(2)(iii) of the Act, in the light of the facts of the case, we hold that conclusion reached by the CIT(A) is not correct. Further, no precise test can be laid out to ascertain whether income referred to by whatever nomenclature, lease amount, rent or licence fee received by an assessee from leasing or letting out of assets would fall under the head 'profit and gains of business or profession and it has to be determined from the point of view of a businessman in tha....