Mumbai v. M/S Akul Investments Ltd

ORDINARY ORIGINAL CIVIL JURISDICTIONINCOME TAX APPEAL NO.949 OF 2007 The Commissioner of Income Tax5, Mumbai..AppellantVs.M/s Akul Investments Ltd... Respondent Mr.R.Asokan for AppellantNone for Respondent P.C. 1. Heard learned counsel for the appellant. Noneappears for the respondent though served. In theabove appeal, the appellant is seeking to raisethe following questions of law: The substantial question of lawarising in the present appeal is regardingthe true scope and correct interpretationof section 23 of the Income Tax Act, 1961and other provisions and whether on thefacts and circumstances of the case and inlaw the Hon’ble Tribunal is right inholding that the income of the assesseehas to be bifurcated between the incomefrom house property and business incomewithout appreciating the fact that theentire income of the assessee has to beassessed under the head income from houseproperty ? Whether on the facts and circumstancesof the case the Hon’ble Tribunal is rightin holding that income from house propertyhas to be worked out on the basis ofmunicipal rateable value instead of comparable market rent method adopted bythe Assessing Officer ? 2. We have perused the judgment of the tribunaldated 17.10.2006. Especially for the reasonsstated in paragraph 13 of the said judgment, it isvery clear that the assessee was not letting outthe entire property. What is being done is thatthe assessee is running a business centre whereinvarious services are provided by the assessee tovarious clients which is totally different fromletting out the entire property and as such thethe tribunal has rightly held that the entireamount could not be construed as income from houseproperty. Under these circumstances, as it isonly a finding of fact, we find no substance inthe above questions of law. The appeal is devoidof merits. The same stands dismissed. { A.V.Nirgude, J } { Dr.S.Radhakrishnan, J }