ASST CIT CEN CIR 29 CEN RG 7, MUMBAI vs. ROCKFORT ESTATE DEVELOPERS P.LTD, MUMBAI

The sole issue raised in this appeal is as to whether the lease/rental income received by the assessee is to be treated as income from “House Property” or “Business Income”.

The brief facts of the case are that assessee is engaged in real estate business and it had developed 'Leela Business Park' at Andheri- Kurla Road, Andheri(E). Mumbai. However, during the period, the properties could not be sold, the assessee earned rental income of Rs.28,65, 16,21 0/- from the above property under the head “Income from house property”. However, the AO treated the said income as “Business Income” of the assessee. The ld. CIT(A) allowed the appeal of the assessee and held that the rental income received by the assessee has to be assessed under the head “Income from House Property”.

At the outset, the ld. AR submitted that this issue has already been considered by the Tribunal and decided against the revenue in revenue’’s appeals in (AY-2004-05) along with other six appeals from assessment years 2005-06 to 2010-11) vide order dated 6.4.2010 by holding that the income so earned by the assessee has to be treated as income from “House Property”. Both the Representatives of the parties have fairly agreed that the facts for the year under consideration are identical to that of earlier years. Hence, in the light of the decision of Co-ordinate Bench of the Tribunal in the earlier years in the own case of the assessee, wherein it has been held that the income earned by the assessee from letting of the properties is to be treated as income from