THE HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTI SENGUPTA AND THE HON’BLE SRI JUSTICE SANJAY KUMAR I.T.T.A No.589 of 2014 DATE: 04.09.2014 Between:
The Commissioner of Income Tax – IV, Hyderabad.
… Appellant And M/s. Om International Hotel (P) Ltd., Hyderabad.
… Respondent This Court made the following:
THE HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTI SENGUPTA AND THE HON’BLE SRI JUSTICE SANJAY KUMAR I.T.T.A.No.589 of 2014 JUDGMENT: (per Sri Sanjay Kumar,J) This appeal by the Revenue seeks to raise the following suggested question of law:
“Whether in the facts and in the circumstances of the case the Tribunal is correct in law in holding that the income from letting out of the assessee’s building to SBI should be assessed as ‘income from business’ and not as ‘income from house property’.
The order under appeal passed by the Income Tax Appellate Tribunal, Hyderabad Bench ‘A’ relating to the Assessment Year 1998- 99 reflects that the assessee merely put his commercial asset for better use during the period of lull in the business. On this fact finding, the Tribunal held that the rental income received from such exploitation of the commercial asset has to be classified as income from business. The Tribunal drew support from judgments of various High Courts to reach this conclusion. It is not the case of the Revenue that these judgments have no application to the facts of this case.
We therefore find no reason to interfere with the order passed by the Tribunal.
The appeal is devoid of merit and the same is accordingly dismissed. No costs.
K.J. SENGUPTA, CJ SANJAY KUMAR, J Date: 04.09.2014 va