ACIT 13(2)(1), MUMBAI vs. SMRUTA ENGINEERING INDUSRIES P.LTD, MUMBAI

सुनवाई की तायीख / Date of Hearing : 12.01.2017 घोषणा की तायीख /Date of Pronouncement : 12.01.2017 आदेश / O R D E R PER D. KARUNAKARA RAO, AM:

This appeal filed by the Revenue on 03.08.2016 is against the order of the CIT (A)-21, Mumbai dated 16.05.2016 for the assessment year 2011-2012. In this appeal, Revenue raised the following ground which reads as under:- “Whether on the facts and in the circumstances of the case and in law, the Ld CIT (A) was justified in assessing the rental income of Rs. 1,08,00,000/- under the head of income from business and thus allowing the claim of depreciation and other expenses against the same without appreciating the fact that the rent agreement is for letting out the land and factory shed only.”

2. Before us, Ld Counsel for the assessee brought our attention to the above ground and submitted that the assessee earned income out of the business activity of renting out the factory premises, plant and machinery etc as a going concern and the same was because of tax under the head „profits and gains from the business or profession‟. The said claim of the assessee was accepted in the past and the later assessment years. However, Assessing Officer thrust on the assessee the head of „income from house property‟ and altered the claim of the assessee in this assessment year. On appeal, CIT (A) granted relief and restored the claim of the assessee. Aggrieved with the same, Revenue is in appeal before the Tribunal.