Itxa/42/2009 Of The Commissioner Of Income-Tax-2,Mum v. M/S Eveready Investment P. Ltd

IN THE HIGH COURT OF JUDICATURE AT BOMBAYORDINARY ORIGINAL CIVIL JURISDICTION IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.42 OF 2009 INCOME TAX APPEAL NO.42 OF 2009 The Commissioner of Income Tax ..Appellant. V/s. M/s.Everready Investment Pvt. Ltd. ..Respondent. Mr.Vimal Gupta for appellant. None for respondent. CORAM : V.C.DAGA ANDJ.P.DEVADHAR, JJ. DATED : 15TH APRIL, 2009. CORAM : V.C.DAGA AND J.P.DEVADHAR, JJ. DATED : 15TH APRIL, 2009. P.C. :- 1. Heard learned counsel for the revenue. Revenue has filed this appeal raising following questions of law :- a) Whether on the facts and in the circumstances of the case and in law, the ITAT has erred in holding that the assessee’s income by way of lease rental income constitutes business income as against the assessing officer treating it as income under the head house property ? b) Whether on the facts and in the circumstances of the case and in law, the ITAT has erred in deleting the disallowance of interest expenditure under the provision of section 24 (1)(vi) of the Act in respect of borrowed funds utilised for the purposes of purchase of property at Poonam Chambers without appreciating the facts brought on record by the assessing officer ? 2. This appeal relates to AY 2000-01 wherein - = : 2 : = - the Tribunal has relied upon its earlier order passed in the assessee’s own case for the assessment year 1996-97 wherein in paragraph No.3 finding of fact is recorded. Needless to mention that the Income Tax Appeal No.144 of 2005 and Income Tax Appeal No.145 of 2005 relating to the AY 1996-97 and 1997-98 have already been dismissed for default with the result that the order of the Tribunal which is relied upon in the present appeal has also attained finality. 3. The issue is decided by the Tribunal in favour of the assessee by holding that the income derived from letting out the properties was assessable as income from business. Since the earlier order of the Tribunal relied upon by it was held to be based on appreciation of evidence as such, we do not see any substantial question of law involved in this appeal. Consequently, the appeal is dismissed in limini. (V.C.DAGA, J.) (V.C.DAGA, J.) (J.P.DEVADHAR, J.) (J.P.DEVADHAR, J.)