TaxTMI 
TaxTMI 
2026 (6) TMI 928
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....ed 12.02.2025 passed by learned Assessing Officer under Section 147 read with Section 144B of the Act(DIN : ITBA/AST/S/147/2024-25/1073209284(1)). 2. The brief facts of the case are that the assessee did not file its return of income u/s 139, for the impugned assessment year. The assessee is a partnership firm. The department was in possession of the information received through insight portal as per Risk Management Strategy that income chargeable to tax has escaped assessment, the assessee having received rental income of Rs. 20,73,600/-, but not having filed income tax return. The reassessment proceedings u/s 147/148 were initiated against the assessee by reopening the assessment with the belief that income has escaped assessment. The ....
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....s. 9,28,272/- towards interest u/s 24(b), both under the head 'Income from House Property'. The assessee has availed loan to the tune of Rs. 70,00,000/- from Tata Capital Housing Finance Limited by mortgaging its aforesaid tenanted property situated at W8, 42/8, 3rd Floor, West Patel Nagar, New Delhi-110008, and the proceeds of the aforesaid loan were utilized for purchasing another property at W8, 42/8, 2nd Floor, West Patel Nagar, New Delhi-110008. The assessee was confronted with the same by the AO. The assessee withdrew its claim of deduction of interest u/s 24(b) under the head 'Income from house property', and instead claimed deduction of said interest paid on loans availed by mortgage of property as business expenses under the head '....
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.... written submission, the appellant has relied upon various judgements of various courts in the favour of its submission, but all the judgements relied upon by the appellant are earlier judgements from the judgements of SC in the case of Chennai Properties & Investments Ltd. [2015] 56 taxmann.com 456(SC) and Rayala Corporation (P.) Ltd. [2016] 72 taxmann.Com 149 (SC). Time and again, it has been held by Hon SC that where there are multiple judgements of Hon SC on an issue, the later judgements would prevail. Hence, relying upon these judgements, the addition of the AO is confirmed. 7. The appeal of the appellant is dismissed" 4. Aggrieved, the assessee has filed second appeal with the Tribunal. The ld. Counsel for the assessee su....
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....sidered rival contentions and perused the material on record. The assessee is a partnership firm. I have observed that the assessee did not filed its return of income u/s 139. The Revenue has information from insight portal that the assessee has received rental income of Rs. 20,73,600 during the year, but no return of income was filed. Reassessment proceedings u/s 147/148 were initiated by the AO against the assessee. Notice u/s 148A(b) was issued by the AO. The assessee did not responded to notice, which culminated into an order u/s 148A(d) of the 1961 Act. The AO issued notices u/s 148, 142(1), 143(2) and SCN during the course of reassessment proceedings. The assessee initially did not participated in reassessment proceedings. The assesse....
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....ax rental income of Rs. 20,73,600/- as business income, and thereafter allowed deduction of depreciation to the tune of Rs. 79,405/- and interest expenses to the tune of Rs. 9,28,272/-, and the AO brought to tax Rs. 10,65,923/- as income of the assessee, as against returned income of Rs. 5,23,250/-. The ld. CIT(A) dismissed the appeal of the assessee. I have carefully gone through the leave and license agreement entered into by the assessee. This agreement is entered into by and between assessee and Tata Business Support Services Limited on 23rd March, 2017. It is a registered agreement. This agreement is for a period of 9 years effective from 01st April, 2017. The agreement provide for enhancement of license fees after every 3 years. The p....
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....on of undertaking any systematic business activity of running and maintaining the premises. Thus, the license fee earned by the assessee is to be charged to tax under the head 'Income from house Property' and not as income from business or profession. Further, the assessee will be eligible for deduction u/s 24(a) of the 1961 Act, as provided in the Statute. The assessee has claimed that it has shown the assets under the head 'Fixed Asset', and there was no intention of undertaking any business activity. The assessee has not filed audited accounts before the Tribunal. Thus, Regarding the claim of consistency raised by the assessee, that for assessment year 2018-19 and 2019-20, the income was accepted by Revenue from 'Income from house proper....