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[Cites 0, Cited by 7]

Karnataka High Court

The Commissioner Of Income Tax vs S Mohan Kumar (Huf) on 7 February, 2011

Equivalent citations: 2012 (1) AIR KAR R 333, 2012 (4) KCCR SN 275 (KAR)

Bench: N.Kumar, Ravi Malimath

%

 

1

IN' THE HIGH COURT 011' K,.€:'iRN"A'I'AKA AT  3

QATED THIS THE :7?" DAY QF..,E:8R%;A'§4:%f:;:Q3;': 

PRESENfCt2' 
THE HUMBLE   '
THE tr-:{5«i'*«':"€sL:i1i.--.VE 

1TA_.NOI32"i?  2009 {Z!W___ITA,§NO.322 OF 2009 C w
;:A.No;.3C;3;2CQ§:";C0;x*_.9C'C W mx.No.32o OF 2009 C W
IT'--A.N_Gi32'€:.®E"2Q;a1§3"'€/W~iTA.NO,332 OF 2909 C 'W
:;;gCry_C;>;3;2»s_g,1F;;2gC1.9CC-C"Csgv 1mNo.327 OF 2009 C W
ETA.N-Q.324"OF"2C.Q§*--.C'W ITA.NO.33O OF 2009 C/W
"1'-F'A1'§¥%m;V3.?g"0E;,T'2G'U9 C W ITAJ\£O,3Z3 or: 2w;

1; fhe <;f<i:'rf%V;'::':iss%<3:2e:' Czf £r:C@me~i:a><
%';Z,R;..5L2§§éir;g,
Queeas Road,

V 2 .2 Ba rzgafare.

"'2f""??2e Assigiant C@mmi§s%Cmer Q? §:zC<3:"r:e~:§><

C+;s":t:a§ Céscéeg



=C.R.Bu§te'ing,
Queens Reed,

Bengatere.   H

(By Sr: i<,\z'1Arvind fer Sri t»t.v;t;,es%:ta:%wa'e'a.,' ;§ttv5:c'ajte¢)":~::,e_A*
AND;

Sr: Sgt/tehen Kumat (HU'E}7 _   V

Ne.1{}--~{3, 6" Street, 3ogu;:2atye;j" 

Utsoot,   * ; AV

Bangalore.        ;g..REsPeNeE:\tt

 %gVeya§r;   M::§Lave, Advecates)

>:m~_:>é<

ThEeV't«£"_fA, féV'Ee_d t.uh':§:_e'r section 260-A of LT_A<:t, 1961
aréséegv eeut ef 't:he "order dated 31~«12--20@8 passed in

 ET£§;'.'€%%e§S'S1/Battg;'2._Q_GEi; fer the Assessment Year 2OO«='41~<OS,
"'etag;s%ngi'7te "mrmuiate the suestaetiat questions of few stated
 'tehetieirzv._Va'e:i<.e%Ee_w the aepeai and set aside the meet gassed
 ttzefETATT'-,VEsengeEete in £TA.Ne.SS1f8eng/2888, dated

3:.'1=2;2§D§s;--: game eenférm the etttiet ef the Apeeitate
Ceef;m§$$§ee.'et confirming the erder passed by the Aesietent

 Cetmrgteeieeet et {meme tex; Ceettet Cite!e~Z§_{3}, Seegatete.

 -..I"i3fi.._t§et32252SG9 e 3:21 2599:

%   eetvveee:



«Kw

E. The Commissicmer :3? irzc:<2me~ta><
C.R.BuE%c:img,   
Queens Read; 
Bangaiere.
2. The Assistant Comm%ssi0ner.._V:§f?_In«;:<::s:*%:e---'s:a;<   
Centrai Circée ~Z(3), ' ' '~ 

C.R,Bui§ding;,

Queens Rsad,  «. .   

Bangakwe. "g",j:; 'af 1;A?PELLANTS
'V V ""' ' COMMON

{By Sm Kr§$¥3énd &3"Sfi M V §éShaéhakL Advocates)

AND:

Smt. E<z1:maia; "  

W/0 Sr§'v--.K;3'u:3%3a';*é:éf::3:;   __ - .
N010, G'»;(<3"" VSt:*e=<_3i,--..3'egLsggzawa,

Liéseor,  . ._ _ 
Bangmozje. V   " * MRESPONDENT

»e ~ =H COMMON '{~S'y. Sr%__A.$hani<ar 8: Sri Miava, Afivoaatasf; X*i>i<>?< "mas ITA.N0g322f2GQ9 ffieé undér secuon 2§O«A cw " £".":'7;;;='«Tfu::t,"W61, arésirég Gui 0? Owes éatéd 33212-2088 passed '-- _;;*:_>ET'§x Eé::E2?;'BE\éG§2€}{)8, far' the fissessmem: 'gear 2QQ5~Q6;

";3vz'3§;Er*:g :9 fermuéate the $:;b$ta:':':§a% 3393:2353 Q1' 33%»; giaied iifzereéng aiéaw the agpeaf am 3%? asfie the Qrdgr wages by Kw % / .7;
the ETAT Bangalore éo ITANO.S27;'BNC3§2GQ$§._ '=._fia'{€d 31.12.2888 and confirm the orders; of t§j.e..f%.'oo'eE§"a:e Commissioner and confirm the order passed b_\I'?;%'1i"3";5E;<,:'SiSii"§§{if, Comm%s.eEooer of income tax, Centre! Circie=2{3}_, E;:aoge§o':"e, ' This iTA.No.321;'200'} is fiie%o»mo'h'der"«.se:<;';.§To's»z._26'C:?zi\L "of D7 }Z.T.A«::i:, 1961; arising out of C}rderV.dat; e<:E»'*313-12~2'OG'87oa§és_eo in ETA No;ES26/BNGJEOOSE foeithe Asses:smeot_3'e'evr"2G£34sUEZ-,V oraymg to formoiate the sutjstergiiaé C;-',;es:§oo_s ofv4Eey;¢..=§tate--oL' therem, aéiow the aooeaé and "s.et'»aside"the'-o_%.=de"ri» oaseed by the min" BangeEore__ in :%1i;:%;-.».:*s,%c:;;.52e/Boo/2ooe, oaieo 3112,2008 one cooféim the " eoj;oe°:or$A of éhe" Aopefiiete Commissioner ctonfirméog the.Lo;%::ier"'o,::<;se,d by the Asséstaot Commissioner of Income iax, C;eh*:ra_.EA._C'i»f§:.%oe%_'_2{3L Bangaiore. SA.No,32C§!.2809fl.j_ ~ 1 V e_e;jrvv*EEN:fl ,-
1, The Coo*:Aofs;EssEo1é:e;* _of,Iocome¥'tax ege.,eo.;::3sng",~.A _ 'V ~ e Qoee.ns«--Roa-(fig ' E?:anga''§--:f>4_reoV " 4'

2. Toe' ;'ixss%sta'o-*;._VCommiseioner of Iocome-tax " {lie atria % «Ci reie w"2{'3 ), . "«.,C.P\_.8~.o§.id&°og;

V _ 'Qoe'e.os- §'<oa"ei, ~. "1.ean'g«3'_:;:y:e~o:;" .mAeeELL,z:ex2Ts ";%;v,Am::e for Sri M,v.See?:eeheEe; edvocetesfg " ' j firé K.Suo:>eooe {HLEF} No.1®~£3, :33" Street, legugaéya, Uisaor, Barsgaiorei ....§:*2§VE§.~5:}v,{$\§'V{:3~E§''§i§" "

(83; Sri A.Sham<ar 8: Sri Ml-§«E3\£:E:¥g ...éiKc1¥::"}_.{ia'€%£:s'}?" f-.__ A' This ETA Es %ized,;:nV_der.~s'éc:is§;: 12:50-A oH.T.Ac:, 1961 aflsirzg out of Grder '=-_d.-';st_ed_ §§i~i"2'=2C}'€3.8 passed in ETA [$0.530/BN6/2008 fer the A536-s$me_nfi"--'?_a3.af'V__2OO5'{36,pray§ng ts f<:>rmuEate the.vsubst;3.:7t§aEf=q:;:'eS":E0'né Q"f»_i'aw stated therein and aliow the_.a4g:«g:)e'at and 2.52': as§dé;~~ijh'e érder passed by the ITAT Bangalgrig §;i*{"ITA.,E\E.o.'E330/BN6/'E068, dated 31al2:2008 and confirm :_f'":e"'":::§-:._:i»e':*-:7;-.,L6?, "::,hé-, xfappeiiata Cemmissioner confirming %:i%..e"»~:'>é{-:.i»er ;3a--s;S%;~:Tr:i«-byy ihé Assistant Commissimer sf Ir:c0mé"'LaxVji:Ceri'%::V'aé 'iqhfc-£e~2{'3)';"Bangaiare. 1TA.No,3'::5Q1g§;;; W BETwfgg\g_; " ' 'vffiiie C-<:n:v+missI<§ri'e"s""'6f §n«:<3me~%:a>< 'v,_C.?{.E:;%t<j§'!:g;
_ " Qa:.e7eri}§ »R:2.ad-{.
~. "53fl§'9"§353¥'V;""V
2. VT-he V-éisséséani: Commisséane? :3? E:':£0me~:ax Céfiifgi iircie ----2{3'}, A. ,C.RQ¢i'£uiEd%ng, Q'-géeng Raad, ' 'E-3snga:o:~e. ...A99ELL;:$~:T3 (8%; Sr; %<.':A2ix.r::§nd far 513:3 ?v"%¢\f§Se$%*:a:%éa§a£, zéfivzscates) AND:
Smt.Kamaia, Wfo Sri i<.Subii:anna, No.10; G~€S"' Street, Eogupaiya, Uieeor, " V *_ Bangaiere.
(835 Sri A.Sha,n"i<~.=3i & ski' E<'i:.§i;3fl\'Lic'a,,_ Adxzecatee) '' f This 1712;' 'i?:'::;.é:' uésdeisf"éeé:::§'n?i"'2.eiiTéA cf E.T,A<:t; :96: arising outr.<3f'":i€e...g:'2rdes:_iiateud V..3v:~:i.2~2GG8 passed in ETA Ne.S28/8NG_/2£§0_8! fer»:h'e'iV'iA$se.ssz*Y;eht Year 28C1E>~O? praying to formuiate"the"::;;ibsE:aii!:._iai'q;z.eVsi"~ic:>ns of iaw stated therein and aiiow thie?.a,Dpe"ai ::md.._set aside the order passed by the ITAT B;3ng--a':ore"iii'-.$'i'!§.F*is:.'§--.28,'Bi\iG,»'28O8, dated 3L:2;2GO8 and Confirm the" ._i}:3.rC¥'eiji'~<ti?' the Agpeilaie Commissioner Cenfirmingghievvofder:;:ra.S;;eed by the Assistant Cemmissioner ef Inmme Té::',_ {Zea-tre"%. Ci"rcie~2(3},, Bangalore. :é*i:_,%i%io.33i2i_;:~;:ée9 Sk mi.§\iei32&/2399: BETWE,E§§;
Cemmiseiener ef Ei"ieeme~ia>< €j}??\.Bi:i%:.:i%i°':g;
' I 1v R j;
Queens ea Bangaiare,
2. The Ass%s'.1:an§ Commissiimer @flm:ome~Ta><*1._ ' Central Ciréie «2{3}, C,R.Bu§Edmg; « ' Queens Road, Bangakxe. V,'; .HA?P&LLANTS; *_
- " " T.€;€;ZT;"</§.{$_¢{)I\iV;

(By Sré K.V,Arvmd for Sr': E'~'I';4';':'V«..§e:svVi':aC--'E'ia;E$:g 'Z\dv §Cates} AND' Sr: K.Subbannja.--{_HU_F} V . . ..

No¢:Q43,6"'$ta£x,;@§u§$%ag'.""*w' Ulsoor, Bangakoreg ' ' ._ 'RESPONDENT . ~~~~ »_=. v~ = - '~-~' COMMON (By Sri §'--'§.Lava, Advocates) >K>i><>i< 7 'Tns'@TA»Q:332/2009 fned under secfian 260~A Qf »§,V""s""-..:I%V<,*:_V,v i964Vi;~-arising out of Order daied 31-«12~2DO8 passed V...':'n_IT£x .,?€Q_£:129.4/ENG/2088, for the Agsegsment Year 2884-03 ;3:é*;1.%ng" ii§'_'*--f©':f;€fiL:iate the subsiantiai quegiécms of iaw stated E§'E&3..§'€§I3 ;ZE.t"1.z3 '_--.':§5§0i,='¥ the appeai and 39: aside ihe srcier passed by "';hég ETAT Bangaere En 1TA.f\é<:>529;"BNG;2QS8; éaied 31.121331-:38 and csnférm the orséerg 3f the Aggetéate fianjmiéséener Confirming the Qrfier pasgeé by me Assistant * _ACG_m"m%Ss:@ne? {:25 U1COi'TE€ 'sax, Cenirai C§r<:§§~2{3}; Bafzgaiare, <2 CQ.E%/i_"3..:jtsEti"'V;.A« (By 3;'? A;Shan§<ar & sn suave, Adve<:'.etes}s:' "

This £TA.Ne.327/2009,efE.E<ed {.m_cé'e--: seg:;:1'<,;.r§s:25$;-§;'«:;%x_ }'I.T.Ac:t,; 1961, arising out of-.tfie_ Ord'e:i deVted"'3_i'¥1'2'~2O08' passed in ETA Ne.S32/BNG;'2GO'8?A'fer the.Ass'ess'ment Year 2004~GS, praying to fermuEate----t.fie sts_bstarétEa.§.. qdestions 01' Few stated therein and._ef_:dw.' the "a«;:)pe'eE.A and set aside the order passed by IT!1\._Tz2 .Bangaldre in 1TAsN0é532/ENG/2008; dated 31;V12;';~2Vdes_._and Confirm the orders of the A4;jpe.i¥ate"Cem'mEssé.edea*' egdfifirming the order passed by the{}?l\ss:§ss-tant'--.Cdim'miss%Qe'e:'V-sfineeme tax; Centtai C§rc:te~2(3),,5'a'r:g3~%.e%;'e.' ' = ' ~ mtg.t.s:TA,Nd--;324,s2'dQs " medftmder seetéen 26f3--A of I.T,!«'a<:t,¢ 1961,'-?~;;:ifis'::":'ig e.t:t«..df Order dated 31-12-2008 passed in {TA i'\'§.:>.E33;'B'E\:<3;;52'{;")Q8,__fC;r the Assessment Yerer 2{}€)S--G§! graying to fermts.IVa'te;'Vthe.__sehstant£af duestiens of Saw stated therem az'1d._eVHdVw"%:he'..a"p.eewaE and set aside the order passed by thee ETA'? _8an'gaE<;>re"' in 1TA§Ne.S33/BNG/2008', dated 3i,t§:«,20't'~}8 and'-.._<:enAfirm the erders of the Aepefiate . "Cerf;m'Es5sté'er1'e..r eenF§'é"'::'éir7g the erder passed by the Assistant C{:}V£T%ift1££§VSi'tZ1f%%?,AF""*C)?_f"EHCOFUG tax, Centre! C§re§e*2{3}, Bangeieret 84 tmm32s!2ees;
BEYi'.x§\fEE%$;§; * "i"he"{',d::nm§ss%ener ea' §f'}COfT§€3~'{5i>< V. * .€;.R.Ed£%dieg;
_ . _>Q:;;eens Read! 1 Vs Beegatese. / W
2. The Assistant Comméssierser of Ine::<3me~t:a>< Centrei Cérde 52(3);

C.R.Bu%E<::§mg,
Queens Road,   '
_;AeeELLANTs

Bengaiores    _ V 
1 '  -:'CZ{V}"§s~«"§.:'_/4Qi'\i"
(By SriK,V.ArvkujferESfl M V.SesHaeha&x édveceiesg "

/3\NDi sr2s,Mahanrmnnar(HuF§e_1% __ E\1o,1Cr~G, 6"' Street, Jagupaiyefg' 1 Ulseor, . * '_ ..

Bangaiore. " " MRESPONDENT "" " COMMON Laval, Advocates} fiéed under section 260% of LT.A<:i:_, 1951,V<E:%7§S.§'§'3g'?QL§EvOf Order dated 3142-2808 passed in §7?_%TA %'~ie.532';'8._NG[2Ci38 for the Assessment Year 2QC2S~O6, ' .V.§T}F?:iv'y'§§'3§;£A"§iO"~§{3I"mu§'a'it3"'ih€ substantéai questions of Saw stated V_ fhereir; E.UC"§ &i..1§<:}W the apeeai and set aside the erder passed ¢_bys:he¢::Af;"sangakxe in ETA.Ne.552/BNCU2SQ8, sated 31'.-:_2g2{}{j'8__ 'exid confirm {he erciers of the fixepefiete C:>._::3miss.iese-.e:* eeefirméng the erder passed by the Assistant Cemmévssiefiey ef Ineeme sex, Centrai C'm:Ee-3{3}, Baegeiere. fee ZTAf%132@/2009 ffied unéer secfien 26G~A cf 1951.; erésmg 92;: e? the side? sated 3f:=~12-2§Q8 '<;::a5see in ETA §'23e.SS3j8?\iG/2&8, fer the essessmerst Year 2 2iQ€}6~G1fi graying so fesmmeie see suestemfiei qeestéees ef :

EV K E E Eaw stated therein and ailow we appeai and-'..':s:'et,AaT$'&§é ersier passed by the {TAT _.~v8»a_:§'g,ai'@,:fe4_ _m. iTA.Nz3.553,fBNG;'2©G8, dated 31.V£2';2Ot38--_4an_,€:£ EE'::vf;:'*:fEr:-'21 the orders 0?' the Agpeiiate Commisgmmaf...Cfi»nf§,:fmi.h'g Omar gassed by the ;5\553§SEE:3F7E Cgmmisséoéier ';>_fE'Ir1<:c:s'r7'.1e»¥:.Va;<, "Lf_é~E3Vt':"a§ C';r<:£e-«2(3); Bangamre.
ITA.NO.323,j2OG§:
BETWEEN:
1. The Cemmissiéjher Qff'In{:G*;%2e¢¥EaEv><.V_ . 
C.R.BuE§dm?g,  V .    '   
Queens  '      »

Bangaioig.
2. The AssEsEtaTr:.t C:3.m:'nis§§oner. of Income~ta>< Ceni».ra¥'-Cir<:Ee'v¥§'2(3}, ' Cfiauzecéang,' _ " "

Queené'ERQad,f' . . , Bzangaéeré. .¢./APPELLANTS 'E ¢ i.E3~ri §<.§§.!.Ar;\§'iéié'f§or Sré M,V.Sesha:ha£a, Advocates)

-ARE --

Sr? :7§';fiagv:;%fi'i§b'EV§<L;mar {Ht}?-*) No.??8,"--18"" Mam;

'~..ind§ras%.5g1;2r 2"" Stage;

"V._Ea:E:Eg"aior"e, ..,RESPQ§\§§3E§\iT {By 55% A.S§1an§<ar & Eri §'»'T.La*=.:*a,, Advscaies) /, Thés ETA flied uncier sectéen arising suit of the Order datazj 3;'ié51'2~.2G'f}8,;::a':3:-;e=:d--§§: iffix j nC)i534;"BNC3,!2OU8, far the As::'ess:mTe§3t'--T_Y'ea@< V§¥i':;%__{3é:;£'I.'L7, praying to formutate the substantia q~:4estE@:i's.%€;~f_is3v§z__é':at'ed therein and atiow the appeai,»ar;_d set._aS'éde th'e'*@rder §;>asV:~:e'd, by the {TAT Bangaiore in '-.I_4TA%.N0.53_4,iBVNC§/2~--Q'{}8;, " flatéd 31,i2.2008 and cenfirm i:he*=._<:rders '~-Qf"'t§*ze'; Apps:-iiate Commisséaner confirming 'Eh€,'€}'f"dé'f--' {massed 'bythé Assistant Cemmissioner of 1ncor1:.s3"':%-ax,7_Ce.ntE'a._{_~€j%E'r'c§e--2{3), Bangaéoie, These m:\s_«:ommg'_:§;::..Vf¢§E %'}_ea'%§.;f{gf;::§:.§é day, MKUMAR .11., detivered the.'fQv§.&_ovv§'ng:»~' ~ "

'éfhegeAxi{L:: .;ag5;;ea.§%$""-_are preferred by the assessees against flxé' the Tribunai heiamg that the rent€;i"vr;ecei\}:«:r3'AA'b§k the assessees from Eetting Gut: wark aVV§';*~.'_c4:::r':d§i:"%"<':§§'*:es*s, e§e<:tr%CaE fittings, fire éjetectors '--<3Vt£;_, ar%éf:"§.§ big;-VVE;*sfurca*:::>d under the heading of 'mgome from <}t%é*a:_r s§:u'r<::é~§' aria aoi 'iacame fram hause p:'<::per'ty.*' A. The su§:23i:a:'ztiai quegtiabm :3? Eaw that arises fer "'::::'h:s'€§§s'a'::§<:2rz En gii megs apgeais fig 33 am§e§:« Eb/V "Z; Whether the Trébunei' was J}9USf§'?'}5€3'('i;5>.V}fi;f?'..::

mgr/e';'ng that the renéef in<:ome reCe:'sfe;j?"~1f§.y' % essessees from ieffing eat tf:e"'£2-uisfdizffg wit}? furnfmre, fixtures and;":e:;:;}_;F;;«:;§ée;*:»:f'5"s}'?s3§.}?.f:?=.. "*iT' be bifurcated under éz«w?»'f>.eeds§"
a) income frem..h0us.e";3:<:$g';:ae%'ay? E3) income fr0m__i§:he_r s{::sr<:es'?"«.M in sc: far as i;1%s2»eV ifigoifije fE0_m""f:m'1%ture, fixtures and equipments js-:§;':§.'gwce"med"eA.E§ot"me Vegeiire rentai Eneeme under ihe hezadmgi'<:;f'V_%,;'2gj:e?me.4fE::>_%I: heuse pregjgerty the inceme is to {De assessed as ';.r1vC::.§fir2e':':<A;:}':'e. house property.
"s«'_Ejhe assessees in aéi these appeaés are Ce~c>wnez's '§':ie=VpeV'xAf:§F_:sEtuated at 13, 14; :5; & 16 Magrath Read, 3a':7_§%ai<};fe::';s"3..V_7":"%*:e said ereeerty was given Ge joint 'v..,deve£0';:ri':e:7:%: is %'v1§s¢Embessy Classic Pzivate Limisech After "'-"me .{'§_'1§§'1ST:€E' ef the gioriéee 0% the érsterest in the esepertgg in feiveui" ef the eieveiegger as its eemmees in seems ef she ggemi %./ /,, we 2-?}'Q.'§'¥S4, "?;"%':e assessing efféeer eeeepiee the mceme ; .:
eeveiepmemt agreement, the essessees had T€p€7,é?"iéC'i._"f'Qflg term eaeéteé gains. The essessees tried fiéee Section 143(1) of the Eneeme '"E'a2r:~.».e._<:i;,, 1j§'6":L;is'.:f§1e%e§_'eefé:e%"» referred rte as 'the Act' fer sher'r:);;'g "VpreeeeefénesV'L_e":2.::i%:.¥er Sectien 132 ef the Ac': was bxffihe .De'eVeE'%m-eat-'gin ¥:he. premises ef the essessezes en i'~.ie"i'ne_Qnff_e Oi' assets iet: aiene undisciesed e?' was found.
After the compE'ei'i:3e notices were issued under' of the Act fer the " «::eEE§ng upon the assessees ate mceme fer the said years.
The assesisees §iEe'd_ Ei¥.ei»~:i}g;>;34iVies on 20~-$2006 and requested _ theessessing Vee.:VhVer§t\:s to tree': the returns of income filed .eeg=é,&ers ;,; r:ArjVe;j $<e_CtE0n 139(1) of the Act; as the returns ef the 'fieemse m_"_:es~Qe'nse :0 the netices issued under' Section 15}-
-- A ef°':he'--- Ae':;'.V Wee assessing efficer thereeftes ereeeedee fie oreers en 28«1Z-«2{)G? for eéi years from 2838-«Q1 te reeerted by the assessee. Yhe assessing eff%<:er_.'eg§:'mp_:1uvvted tee §<:sr*zg term capétei gems en the join: Rs.S3,{}?,3S3/- as against RS£§'6.£>3»S>€'€'g4'fi'(Y';V"'$§~%:%'§%fiJ'%LéVVVfly' rvheves' assessees m the retum of t:he;":.§ne[e:e'e. ¢a;sse§g:;2g authority brought fie te><' __v':"$--~'1e %u':*e:iLerfe;»,:V' fE;;»t.;.:{es equipment and hire cherges "ether sc:>urc:es" by the assesVs'e-es.ue§je.f "Income from house eroperty"fA'tf}ere§3y"'e--er:}y§':2.g:»s,fifgep v:7;i.e:<:'e:<:tion eiaimed by the memes berrewed frem i[vCZ__I_(_:l said amenities and the depree'§_af:§Csz*'2AusVe"§%ev§ie'nee»'_A:.:'ea' the furniture, fixtures and equ%pmehi4 's by the same, the assesses prefeiffieef en"*e._g;)VpeaEv is the Commisséoner of En<:eme~ The appeiiete authority' granted reéief to the 'e_sse_s«see«s'_'ée sefer es cemeuietiers ef ieeg term cepétei gains is eer:::emeEL Heweves; éft ethe: aspects the ereer ea' the .,es::ess%b."g e;'fi::er was eenfirmee. The essessees preferree an \§v/ eppeei to the Tribunaé eheiiengmg that ;f3C}E"'EZ§QIi'%;v"'€L1i¢«j."*§f;'.'%_.:E_§' €Z:f%¢i§*'3i"' which did me: give them the refief.
4_ The Tribunei :"ec<:>rde:c;§,A a iufigfi ::Vi§;1e authorities beiow misdireetebi'v'*:.%3.emVsev%§zVe3V 'inf 'c'fs':é2<:2:£.§<>§g§«i_egVthe' depreciation and interest enV__{fi:e.:__ze..;_eme' charges rendered by the other seureesf' Aggrieved by t'fa%--s_ [30£"fZ'i'{)'i'¥.~_C§f: Tribunai the revert. me has.
T"'*EfE§fe %e'éf;%':1e'<§.'VVCeunse:"appearing fer the revenue assaééieg theV2mp'u.v€;x<:3ed_._e--r.::ige:~r contends that the material on record' d§sc: E"ese's .:hVatf_he~~'essessees have Eet eat the premises i¥*'\!§'E%":._ furn'Ev€u'r-e«"end fixtures to the £essees under a _ <,*<:>§9_:*és':1e';fi._"%e4é£s;e "deed. Without: these furniture and fixtures, €ee_"'she%_Eeegiegee ef the eaéiding és :3? me use fie the iessees. 'mus furniture and fittings eeuéd me: have beee iet eui: ":T"_§r§::£e;>endeet§y ie any ether eersen. Under these ' eiircemsieeeee as heié by the Ceécatie High Cease es ihe ease 'I % ',' ef CGMMISSIONER cm Incbms mx INVESTMENTS PRIVA rs LIMI'2'fED:,,<[«fer:-er:ted._ 'r';:.».(12VQeO':.'z ) ' 249 rm 4;? whéch has raeenerrarrrrmétiey the,+'{'ee;t_CeL};rtu'thet, %<::§t_ an Em-riri€>'\}eai:§Ee property when the main mtentéen is to eke by way of cempéex <:<::>'z*.s._.:_*rfr«-»e~=re.§_;aV1I the itrrceme derived representing thehire fixtures terms part of the" Therefore; the Tribune: ..te:%;:rEn'r§§aweentrary stand. As such they seek fer" 'settVEr'V§3g a-s§€:ieVv_th_e_--said order.

6;. The Vieat-r1_:eir:¥..__&e.u.r--see} appearing for the essessees supported tt'E<2e_'%me--ug;m_ee'*'"'erder contending that there is erziy " "«...,£>n'e._'i:e€s_se eeed er7'r:i"e'Vseg3arate rent is specified for the sheik, and fer the furniture and fittings which ere Vgiveeerg rétre to the tersante Er: feet a leer: was berreweté rem ":C':':.CI bank fer previeiirzg these fittings eee furniture; e.e:t>"rd%ng tea the specifieetiorz 01' the tenant and the said tease is tedeeerzeerzt of the Eeese er' the buiidirse, though tee at/be :3 very same {ease deed both are specifieaiiy separate seneduiest Therefore he Submit§_i.n.éV:t:':*Qy t..$tre'te.h d of imagination the rentai income '4 furniture and fixtures would: inCon'ée.. property and the hire enargeeV'Vt't:ieVe'eiyed %:t. regatd wouie not constitute He EH50 contended thatjn the amount mvoived doee" prefer an appeai in véew of tand therefore on that ground aione"t£fs.e$e'?.ep§34ea§.s are Eéabie to be dismissed. ?I *--__T'heV"§'ee':<§je--e:t"'--.;:oonsei further submitted that in reseeet of sonde_Votnezj' eowowners the revenue has aeceetea' tneér the hire cnergee from furniture and fixtures "weL:_§oti income frem entire osopetty, Even in resthgiiect'-.VAo'f"'Vson":e essesseee in these eeoeate for the s::.ee.$eq:§'ent years, the revenue has ecceoteo the hire Charges \ °;?::>%' feteitute eee fixteree ee fetimg owes the tzeee' "%eeotee frem ether sources" and emy in respect of thee...erdek'e"gm;h%,ch are the eubjeci: matter :31' theee eppeais .:j_h'e._;--h:a_si' taken such a stand which is not ;3eéE%§9i§'4ss%?;iee if'?-; 85 In the Eight of rivet contemticms the cguestécm. oe'§"'c<;>n*SV:idera+:iot1 is whether the income and other amenities pr<§\z§c1'ec§ preperty weuid constitute u "Act cEea%s with cemputation <3?

tote? %ncc>'m e of income, 'Q: deats with éncezifie {rem iVic>::eve eraperiy. Sectéee 22 C2? the Aci: ciefmee ."éru::c>s:':_VeVf.re.{fi"~-hause pmg:serty" which reade as L3f1C§ET;*~ 'f__?'f2e.f~'anr:e;af veiue <3?" proeeriy ceesigéieg es' emf' ':7Qé1,'::f£::r§?.§ or fancfs epeurienenc Ehereie ef' which the A essessee is the owner, eéfler 323:2 such partzene :13? 'A eucf': Qreeeréy 35 ee me}; ecczgeg far We purgeses 2a of amy zi7u;:!:?e5s er ,:}rofess!en cemee' on by gjrofifs 02' wf7i<:h are ehargeebfe :13 :'z?come':fe;x;; be cfsargeaziie under me head "]nceme--»fr_<§'m ';'?eu.se "

property. "

Therefore it is efiear :'::.e_3_1: it 'és; 'i:he i3:'i£'*;u':;:3'! veiiue _e é". preperty Consisting of :

a) any bu%Idings'e4_§*':M«-- _V V
b) amounts derived V V __ C) of v¢h§<:Ifi tv%::_e ae;é,%é$:is§g eVw'::';e':' onfy Comte be the éneefixe Lie §_s*s:;o.r§9:e:'t}3f>< under the heading inef;{;fgre rfi' heiiezie p':"e:3e%*:32".

10, " Act emx/ides for determination of armuai ve fu.e. ' eesg«:m}%; 24 deals with deductions from if'2C<f_2'f'"z5'E.€fx%'<;§Ff§"? hoéjse....;2_repertye Section 25 deafs with amounts :2:;»V%:":fiVee;;:{i%bVE.e"'fzfem income frem heese ereperty. Seciion 2:3: :2-eatsMiéejtjhf=g3r<:3per'eg owrzeci by Ce«e:me:'s which ere:-flees yvzhatf "Where me proeeréy eesgiséieg 0:' be:'§Q';'n§s er ea::'ieir'ngs er feeds eepurienené thereto 2'5 swnea' by two or more persagjg and their respective shares: are c7'e2"i;fg';;§ie"':"'~.""

and asceriamazjfe, such persans :~:f7g.=,"--,--'. in respect of such property: 5me; éssssseéii '- _ an associafiers as' persons; 59: (si2é2*"e a~f, «. "

each person in the inafé§fii?:;> from #52:? property as Camputed ;:E)'V.._x3 c*:Qrc!a2n€eu:T£z%};'th ; Sections 22 to srzgs/[::e}1AMg%;:§;u;1ed ;.«?2"%n':"

foiaf mc::»me."' 'A -- 1 V V' .: '~.« . ' $ Far-x 1-1. is E':=,r~f'_: *:h:::._ Lagicgrsund we hawe is See 'cut:
statuteryépréfiwésién in Section 56 which deais with incofigxé' Emm 0':h_VgérV'§o{;r:es. Sub~SeCtI<:>n (1) of Sectien S6 i:é*:.L:¥;§é§:a":t._Vi:E":at magma if every kind which is no? {:3 be 7e;*}<::£T';.;dé':;'i:""f;j§>;23§V~,.=:'he totaé éncame éé!"1d€E" tfzirs AC: tshaéi be aha:-=g€avE::i€ Amceme tax Lmder ihe mad "In::ome frsm ether A 'E"€,§£,£y§'£'j€3'§".;_. " if E1: is not chargeabie ts ir:C0me~2:a>< under any of gpéciféed in S€c:€ic:::": 34. items A $33 E' Sam» EV/,., »«"''5'' ''3 "?
SeCtEeh(2) sf Section 56 speeifécekfy states éhceme tax which shah be Chargeebie to Ehc<>"'£"£=se the head income from ether seurcese» Sub~€1aLi§se.{iE}"'g3E_eszid.es"' that "ih<:Qme from machinery, pieht 1'_'_'<3r'T'fué*i2.§h;:rf'e to the aesessee and Eet <}r'.u_ "'~h.iref A":-{theT';nceh'1--~e.. ':5 ha}? chargeable to éhceme--tex uh;iVeru:the"Vhead""Pmfi%:e:§and gains :31' business; or prQfess"i'e:fi;'5 "--e_C§E;-e@.;se-{E}5.}'eise provides that "where an assesesee ietgidh hheiam'; er furniture beéehgihg fzfm the letting ef the bLi§id§fl§S_ Eettmg ef the saéd maehiheiryg income from such ietiihgg if i: is not cheefgeehE'e_Eeehiizciemée tax under the heae "Profits and gaiheefievf i:susines-::=..er p.refessEeh."" Therefore, the mtesztéen of is e><§;>§§::§t' If the machinery; eéeht ahe 'f?u_r":é.%:;;:r"e' separate from the Eethhg ef the said V . mee.?'géee'--:¥§,,"'§'he ii'7CGfT'I€ frem gush machinery; eéaeé afehg ._x}v'§*:§h':..ihe"€r2come {rem the buifdéhg, the ihceme £3 ehargeebée _ its Ehheeeee iex weer éihe heed ef iecome from ether eeuh;:es,, 3?
if it does not faié weer "profits and game er profession". Therefore, weer me c§rcum$.te-::..ee.Vvtr:.ef f,m:<3r'r.--e from Eettmg eat ihe furniture and :fi_><t:g.reA r3ei:errgee 4C"e'e.ergeAeebEe ' to income tax under i:he,'E7eae '%rzC0m'eg.fre.mZgheuse, property.
12. It is in ere-.._V%1ave to see the various 3udgme_ré':3_ er:i'vRkr:'é<:§i:: in the case of SHfiW5:_U §;'r'"§fjg';'vVrei*erred to supra the at Rahefia CWWDEFS;

Member. said premises and iet it out tr) various p'e.rs'er:sV"ah'dXor "§Erms arrdfor erganisetécms with aki fur.n.§':ure, fi><t{,:res; !Eg:n';:j}, eirweerreéitieners for being used as »'%:e--bte _eeec.e;';~-,_r<1e also had agreed ie provide eervécee Eéke weigh staff; eieciriciiy, water erze ether eerrrmer:

arrxuerwté-e5,"".V"i"r':e meeme derixree ray rhe esseseee frerr: the Said effiee eremieee wee efferee fer texetien ee eusmess 7?rr<ie;!§rre and eeeererrrgigr he wee eeeeseeel The Cererrfiesieeer 3 4 sf Income Tax neid the income derived fronf.j".§n.e"'--said gjreperty was actuaiiy rent received fi"C}E'T: the~eCeA{::3§'ersj:"'e.né» net to be regarded as service cna_rg.es_ anc§"nia"§'n:en'en'ee =a_n'<fi» _ "
Cannet be termeci as Business in<;'§:>':nwei§_"'VLV:*~ne';:"sfVifj*;£:naiusezeséefe the order of the CommissIor:ef"--a..nd 0f%ti'z~s assessing offieer, In anneal; «a:I?.*;ezft:'eferring to the various judgments"".neId eecause income is attached to anyinf}moxgame::'E:rV§'nes::y{neesesnnoi; be the safe faster for as income from 'nropertvy.__vv\V5.f%n.e}::?;V'§:f:§sT what was the primary objectsef exeiniting the property. If E1': is found the main éntentien is far Eetting Qutggfne sA;>rope'%t;:_VVor any person tnereef the same must be ,'een.s:c?e»:e;§ _a"s«-._rentaf income <3: incsrne frem prepeniy. In case i§§_ main intention is in expieit {ne Ernrnevsbée Vesvent Eéfmust be new as Business §n:::::n'ne. ;:>n:'>";'3e:'t3;':A:ex,r sf eernplex Cernmercieé aciivifies En shat
13. Apmying the said few ':0 the facts ef it was heéd that; the Cast of the ereperty was 4' portion of the said Qroperty Es used.s»vbiy* %:he' for his awn buséness purpose.
has been Eet out to the Vari®vs'~..g_eCz¥@ej;j5g~ aiready reeevered e sue: of E§s,.Ls§§:;2.S;G_QO/.~.'a's:VeAn«;iEby way 9? security free advance' Hence; the entire cost: of teev_.pr0e'eft.y:::§ev:' Qccupiers has aiready been hefdg it cannot be said the preperty for its c0mme:je%e_f and such business activities are prime"fi'eties"-3:y§'eVA'.!e%§e'.e{;;V.'eut the property is a secendary 0ne?,._§k§i5ppE.§/irzg vtheviéestiset eiexzxrn in Suitan Brothers ease by it was hem that, if is cemposite tame space ?e*';"e_§;t ':'e«"'vva__ré':§{:s eeeupaets; the amenities grantee :53 Eeose _ eeeafgaanis irzeéagdéizg the user ef fee furniture see fixtures are . .,e:1§a:;4heCi'''te such Setting eat and by the said agreement; the e'ar':':es heve intended that such Eeiiéng Get weeie be 5:: i/ :6':
mseperabte one. The prime object of the aeses$e.ej_»L1f7'ee=f§be eaée agreement wee te fie: eui: the property te various occupaetg by T. of using the furniture and, _fi><ter.ee'-._A.e3nd faciiétéee for which rent was paxée' edditien te the secure} free _a' d"{r_aV'eeekeyerée§"th'e entire cost of the said immovame it heid the said mcome is to}.&:e:VV V:rea§_ed€ éis house preperty. Therefere,a:'?e;'esaEd Case was; whether the "a'sVVV§r:'§c:ome from house proeerty or ir2<:oV'me" fre'm_ EjLéVs~§.{iesé';'e.__» __ 1%'; __:n ef SULTAN BROTHERS PRIVATE' _VIT£:':°:'), i'.§;~--.COMMISIONER OF INCOME' TAX reeerted m "':s_§%5V4 :":';e,..:.re§:;;" LI 353, the Cansteutgm Bench ef the Aeex Ceékt 2.§feev"'dea%§ng wétéi. a Cage where the aseessee who <::':.er1_.s;tre°C;*:;ed e buflfiieg en Péet No. ? at Bembey nae fitted up: "':;:}éi'i*a":fumitere we féxteree fer being me as a hetei. 'She aszeeesee iet eei: the buéidmg futiy equipped "to one Veyantzis fer a term er' six years fer rumhg 'evA_"%k.eieEe'e.ed' fer Certain other eeciliery pur;3ese;sj.»AA»VT heefeese e» 7 monthiy rent :12? Rs¢:"£,S'}SO;'« .fer 'an Rs.S,OO8/~ fer the furnéture""'e«e:e"d fé>%tu..rtesu.@".= contended that the er:§:;~::_e b e a"ss'eV:ssed under Semen 13 as the incoree gef the aitemative; the inceme fieetéon 12 as income from a .,.§'§f-.."af;;;o§;r'eeV not specified in the pI'€Ced_E.f7:g.SVeC:{§d}'%$': ,7 {he aifowances respectiveiy specéfiieiei 'fin .{3') and {4} of that Section. Theref<:;re;e..:.V%*:eV arose fer consideration in the sa§d.{;:as"e »«zes;":,.«sheth'é:r the renztaé income is 'to be aeseseed »es--.a_ :32,:s'i«§:e;:S~-mceme or meeme from ether seurcee, ""}3~$newe:*Er:g the eaéd euestéeeg ithey heée 'she rent rrer.f:f1 {fie euiidieg wiii be comeuted eeearatefiy frem the "'}.e€:e%'ne free: the fernitere ewe fixéuree eed €52 ihe sgaee (3? rent Elwf / 28 from the buifdirzg the appeéiaot wiéi be eiéowaoees mentioned in sub~seCt%oo...(ré$) the case of income from the furnivt-ote.,"A_eej'd mentioned to subsection (3)'§V_§§':~¥._oV' thet~ oo 5-{1co%me:t' can be asseseeci under Se:ti.oof:_9'wV_Vor Section 10. Therefore, to substanCe"'§tV:Awae. tens under the heading of income_.from""o'tb:ereo§2.r'_ee:?3. foot income from business. did not go into the furniture and fixturee wouid figli from house property at aft, A3 such; theeeid no epoiication to the facts of thésegjeeg.
?e_65',.A_E.eV-tvhis Case the question for Consideration is i%;.tzet%:e§*"t%*;~e._ioteeotoe from forottote and fixtures is to be out V _ under :;net:*,:,::as 'iocome from house otooetty', As both the 4"--_Fees.:es "re Cootemeo in very eeme document the saio _' t._3";2_o'g;:*:eets are of very iittie essisteoee in oeetoéog tee caee 'Eb/to M;
on hand. Hswever, the Madras High Ccsurt .0?' mmpees AND company an connirfiszcinfik T' as INCOME mx reparted in (20O3J)'AA'V.'2*:$s'A:v21_?'.'f§';.:3'8$,_;dé§_§éfsg T with an édenticai %ssue heéd as, pmdef':-.~ =. " That me 3c€ua!VL4L"';r§§n€VV_recésbrééffl' me awner ('c3=5sess§E=} ~;agou£€f. <;(§r';é;;'if QZté3 the 55:93 for determining the 'é:*}2;f}L;'3§4z-.,.:{z¢:}!U§3: was {he Va'/U63 whichV_.woL:Et7"'?$i'}«'é"£376 basis for :}!ei'er:27Vi;%%!r::§iT'L:ff7~::_z:}'?cé:7§é 2'_fé:>:*r'2 ";'éV<'9'L;;'s"e3 praperty and for a§?!om§«-}'k?_gj"'5;%efrém income from é,>(fe;3--é permitted under the Incometax Act. In mai:,{;'?gV%5L2<;:£:"<:%i§mf§':;<zfé'5iZ>n, {here was no previsfon tQ a<:f:§'=r:;_if;e.r'.'--a?;?;:7ii?§€5 receive;-"ed fig' the owner of £2';/;'fa'i}é'g;'A..a_s«representfng the vazue of me A 5c§?m:{c4€4A"::fzarge3 rendered by him is his fenanzfg as fmézse praperfyk Henae, {he "VTr;'g:>;}f2§3§_f wa5 ffgfié in f}§fcif!.r3g ffzai ifze .f"€E'C&?zjf3€S 'frésvv Service charges were fiabie in be assessea' V n aS""Ir2Co,me fram z::uff?§r geurces ancf not Income sf.rc2::'7 heuge ;:>rG;)ar€;z, "' 30
17. Therefore, from the aforesaid statutery:'p.f'e.>;2Es§ehs it is deer that if the ihceme is te be heading 0?' 'income from house pre;:_:_erty_-""%'€"'sh'eh'E'ehe income which represents the vé:x:hh:;;:_'eE~:V v'e:»f.;.';e' Consisting 0%' any bufidihg which the assessee is f:he jhsceme shah be chargeabie to -head 'Enceme from house property} Hm,/he;'1" it exphcitly deer that fixture bekohgihg to the asse_s_se"e,e';':e§;:::E_ee Es net chargeabie under the heedihg gems of business or prefession', then it has 'c0vbe.e'%1VA'a;:gie*;i44fio income tax under the heading "§E'1Cé:f3:'E'¥'!:E3*e'. ethe'r'~A.._Vse:,:r:esf if the aforesaid ihceme is it;s,ep3febEe4vA'f'mm iettihg eut the seée giant: 8: mechéhery ether ":_he--h; 'ihe"_'vv.Ehe§:m*§e ef such Eetiihg out cehhet if ii: is het che":*geeb%e""te Ehcerhe tax sheer 'erefits ehe' gems er ;:§h:;fessi'en', is chergeebie eneer the head 'Eeeeme from ether "'se{;€'Ces;' "ihesefere under these eéreehhsieneesi fee ihcerhe E,/R derived frem Eettmg eat the fa,:rf:f;§Vt;.;re aha"'--§§';<tQ';@eV".§s _.;'1c§'e chargeebie under the heaemg'-_ef::""i..r:;ee:<t:e'. fre§zé"ee~-..A%'fz:'.eee preperty'.
18. The féndinajyv--:feCe:*ded_ Tribunaf is En accordance e.n Ci eéees _neft- Ve'u§fe'E"from any iliegaéity er infirmity a§1evtEée'§efe}e»Ceii for mterference. The substaivetiaé .q{se.s:t.i..Q%:.ec3fe.Ee'w__raised m this appeal is answered m favouf {}1:'th€ aVesesVs;ee"'---g'v§'rie% against the revenue. '.19. in ES:-r as the contentéon the: these appeaés are M.,not-':e:§%a§,.m:ei~nAeb§e et"'a'i£'es; they ere hit by Seetiee 268-em) én merits itseif we have heid that the e's::,e:ésee$'eéfelentitied to the reféef and diemiesmg iheeeeeefs "V...ephe1e"§Ve§} the erees" 02' {he Trieunei, this queetien need not be éeie in these aeeeeée. Aecerdingéyg, we ease Ehe €eE§§e:/vieg e:'eer:--- @"