TaxTMI 
TaxTMI 
2022 (8) TMI 525
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....dated 23.07.2019 in the matter of assessment framed by Ld. Assessing Officer [AO] u/s. 143(3) of the Act on 30.01.2015. The assessee has filed revised grounds of appeal which read as under: 1. The Learned CIT(A) erred in confirming the conclusion of the A.O. that rental income from letting out of the factory building as Income from Other Sources. 2. The Learned CIT(A) and the A.O. erred in not appreciating the expression " if it is not chargeable to income tax under any of the heads specified in section 14, items A TO E" of Sec.56(1). 3. The Learned CIT(A) and the A.O. erred in not appreciating the import and meaning of Sec.22 of the I.T. Act,1961. 4. The Learned CIT(A) and the A.O. failed to appreciate the fact of letting out of....
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....d operations in the early 1990's and acquired land and constructed a building which was used for fabrication business. However, due to slump in business, the assessee shut down its operations and entered into two agreements to lease out machinery as well as factory building. The rental income from factory building was offered as 'Income from house property' against which the assessee claimed statutory deduction of 30%. The rental income from Machinery was offered as business income against which various business expenditures were claimed. The assessee reflected loss of Rs.44.76 Lacs in the return of income. 2.2 The Ld. AO held that income under both streams would be assessable as Income from other sources. In the process, all the other exp....
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....together to the same person and for the same period. The separate agreements could only be considered as the deeds of convenience deigned to suit the requirements. The Machinery might have just been housed in the factory building and could also be easily dismantled and moved to other premises. Thereafter, the factory building could be used for other purposes independently. However, as long as the Machinery was housed in the factory building and that too in operational condition, the building could not be let out to some other person. Considering the factual matrix, Ld. CIT(A) held that the letting of the two assets was inseparable and rent received would be assessable to tax as Income from other sources as provided u/s 56(2)(iii) of the Act....