INCOME TAX ACT, 1961

Section 14

Head of Income - Income from business and profession or Income from house property - Income received from sub-letting of rented premises -

Assessee-company was engaged in business of gas distribution through its network of underground pipeline. It also derived income from sub-letting of rented premises as well as finance and investment activity. During assessment proceedings, AO noticed that income received by assessee from rent, compensation and service charges of let out premises was shown under the head income from business or profession., He further, noticed that in the preceding assessment years, such income received by assessee was treated as income from house property and thus, following the decision on the issue in the earlier assessment years, AO treated the income received from rent, compensation and service charges as income from house property. Held: When identical dispute came up for consideration before the Tribunal in assessee's own case for earlier assessment years, the Tribunal after taking cognizance of the orders of the City Civil Court, the High Court and Estate Officer filed by way of additional evidence, restored the issue to AO for fresh adjudication keeping in view the additional evidences filed by the assessee. In the impugned assessment year also, assessee submitted similar additional evidences to impress upon the fact that by virtue of such additional evidences holding it as a monthly tenant. Therefore, keeping in view the decision of Tribunal in assessee's own case for earlier assessment years, the subject issue was restored to the file of AO for de novo adjudication.

REFERRED : ACIT v. Bombay Gas Co. Ltd. 2019 TaxPub(DT) 1270 (Mum-Trib)

FAVOUR : In assessee's favour by way of remand

A.Y. :

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