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| The Tax Publishers2020 TaxPub(DT) 0940 (Kol-Trib) INCOME TAX ACT, 1961
Sections 263 and 14
Letting out of the property was not the object of the company at all. Therefore, character of income which was from house property had not altered because it was received by company formed with the object of developing and setting up properties. Thus, AO had taken one of the possible views that the income should be assessable under the head 'Income from house property' and hence, order passed by AO was neither erroneous nor prejudicial to the interest of revenue.
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Revision under section 263 - Erroneous and prejudicial order - Whether rental income of house property is assessable under the head 'Income from house property' or under the head 'Income from business or profession' - Assessee-company incorporated with the object of buying and developing landed properties
CIT assumed jurisdiction under section 263 to hold that rental income from immovable property owned by assessee-company was assessable under the head 'Profits and gains fo business or profession' as against rental income assessed under the head 'Income from house property' because assessee company was incorporated with the object of buying and developing landed properties. Held: Letting out of the property was not the object of the company at all. Therefore, character of income which was from house property had not altered because it was received by company formed with the object of developing and setting up properties. Thus, AO had taken one of the possible views that the income should be assessable under the head 'Income from house property' and hence, order passed by AO was neither erroneous nor prejudicial to the interest of revenue.
REFERRED :
FAVOUR : In assessee's favour
A.Y. :
IN THE ITAT, KOLKATA BENCH
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