2022 (5) TMI 1217

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....s and circumstances of the case and law on the subject the learned Assessing Officer erred in treating the business income of Rs. 3,38,46,924/- as Income from House property and disallowing Business expenses of Rs. 4,64,59,034/- and the Learned Commissioner of Income Tax Appeal erred in confirming the order of the Assessing Officer. 2. In view of facts and circumstances of the case and law on the subject income to be taxed under Business Income and not income from House property and consequently the set off business expenses of Rs. 4,64,59,634/- be allowed." 2. The brief fact of the case shows that assessee is a company engaged in the business of building and developing properties. It filed its return of income on 29th September....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ingly, the learned Assessing Officer treated the same as income from house property and granted 30% standard deduction and thereafter, computed Rs. 2,36,92,847 as income from house property. Consequently, the assessment under section 143(3) of the Act was passed on 28th March 2016 at a total income of Rs. 2,37,00,380. 5. Assessee preferred appeal before the learned Commissioner of Income tax (Appeals). The learned CIT(A) vide letter dated 25 February 2019, dismissed the appeal of the assessee. Main reason for confirmation of the action of the Assessing Officer was that the above income subjected to TDS under section 194(I) of the Act, wherein licensee has categorized the same as rental income. The learned CIT(A) rejected the contention o....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ferred to paragraph no. 5. Accordingly, she submitted that both these decisions of the Hon'ble Supreme Court cover the issue in favor of the assessee. She also relied upon on the decision of co-ordinate Bench in case of Asset Investment Services vs. ACIT 331/Mum/2019 Assessment Year 2013-14 dated 28 January 2020, which also covers the issue in favor of the assessee. Therefore, she submitted that the impugned income earned by the assessee supported by the memorandum of association is chargeable to tax as business income and not the income from house property. 7. The learned Departmental Representative vehemently supported the order of the lower authorities. It was submitted that:- i. TDS was deducted on above sum under sectio....