The Income Tax Appellate Tribunal (ITAT), Delhi bench held that rental income earned from the lease of a building would be taxable under the head “Income from Business and Profession.” The tribunal had already decided the issue in the assessee’s appeal in the assessment years 2008-09 and 2009-10, respectively.
The assessee, M. M. Creations, filed the appeal before the tribunal against the order of CIT(A), confirming that the rental income earned by the assessee from the leasing of a building is taxable under the head of “Income from Business and Profession.”
During the proceedings, Kapil Goel, counsel for the assessee, argued that the CIT(A)’s order regarding the holding of statutory deduction claimed under Section 24(a) as income subject to tax as “Income from Other Sources” is erroneous because it fails to classify the depreciation position, which would only increase the deduction in the appellant’s favor.
Furthermore, the assessee argued that Section 251 of the Income Tax Act has not been followed by CIT(A), and the question should be resolved in favor of the appellant based on the facts and circumstances that are in line with the facts that are directly applicable, as determined in the case of Raj Dadarkar & Associates vs. ACIT.
Smita Singh, counsel for the Revenue, submitted that the same issue was already decided against the assessee in the assessment years 2008-09 and 2009-10, respectively.
Therefore, the bench held that rental income earned by the assessee from the lease of the building would be taxable under the head “Income from Business and Profession.”
After reviewing the facts and records, the two-member bench of Dr. B. R. R. Kumar (Accountant Member) and Chandra Mohan Garg (Judicial Member) held that rental income earned from the lease of the building would be taxable under the head “Income from Business and Profession”.
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