If an issue decided consistently in a particular manner for earlier assessment years than rental income from factory building is to be treated as business income

Last updated: 09 May 2012

Court :
INCOME TAX APPELLATE TRIBUNAL

Brief :
We have heard the submissions of both the parties and perused the material available on record and the judgments cited by both sides. We find that the judgment of Hon'ble Apex Court rendered in the case of East India Housing and Land Development Trust Ltd. (supra) is not applicable in the present case because the facts are different. In that case, the assessee purchased land and set up market therein. Some stalls remained occupied by the same occupants and the remaining shops/stalls were occupied by a shifting class of occupants. Under these facts, it was held by Hon'ble Apex Court that the character of income was not altered merely because some stalls were occupied by the same occupants and the remaining stalls were occupied by shifting class of occupants. In the present case, the facts are different and hence this judgment is not applicable in the present case. Similarly, the Tribunal judgment rendered in the case of Atmaram Properties Pvt. Ltd. (supra) is not applicable in the present case because the facts are different. Facts in that case are noted by the Tribunal in para No.7, as per which, the property in question could not be treated as stock in trade and there was no possibility of any construction thereon in view of NDMC and L&DO stand in that case. It is also noted that there was no activity in respect of property which could be construed as business activity under the law.

Citation :
ACIT, Circle 12(1), New Delhi (Appellant) Vs. HB Estate Developers Ltd., H-72, Connaught Circus, New Delhi. (PAN/GIR No.AAACH3122M) (Respondent)