Itta/589/2014 Of The Commissioner Of Income Tax-Iv v. M/S. Om International Hotel(P) Ltd

THE HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTISENGUPTA 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.… AppellantAndM/s. Om International Hotel (P) Ltd.,Hyderabad. … Respondent This Court made the following: THE HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTISENGUPTAANDTHE 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 followingsuggested question of law: “Whether in the facts and in the circumstancesof the case the Tribunal is correct in law in holding thatthe income from letting out of the assessee’s buildingto SBI should be assessed as ‘income from business’and not as ‘income from house property’. The order under appeal passed by the Income Tax AppellateTribunal, Hyderabad Bench ‘A’ relating to the Assessment Year 1998-99 reflects that the assessee merely put his commercial asset for betteruse during the period of lull in the business. On this fact finding, theTribunal held that the rental income received from such exploitation ofthe commercial asset has to be classified as income from business.The Tribunal drew support from judgments of various High Courts toreach this conclusion. It is not the case of the Revenue that thesejudgments have no application to the facts of this case. We therefore find no reason to interfere with the order passedby the Tribunal. The appeal is devoid of merit and the same is accordinglydismissed. No costs. _________________ K.J. SENGUPTA, CJ _________________ Date: 04.09.2014va SANJAY KUMAR, J