Change of Nature of income
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
19 October 2010
Started business of Let out of Property to Govt. Agency and Income Tax return filed for A.Y. 2006-07, showing income as business income. The case was selected u/s 143(2) and nature of income was not disturbed by the then I. T. O.
Now after 2 years the case again selected u/s 143(2) for the A.y. 2008-09. The I.T.O. is not satisfied with the nature of income and wants to disallow the business expenditure to treat the income as rental in the Income from House Property.
Kindly enlighten me with any case law, highly obliged.
Now after 2 years the case again selected u/s 143(2) for the A.y. 2008-09. The I.T.O. is not satisfied with the nature of income and wants to disallow the business expenditure to treat the income as rental in the Income from House Property.
Kindly enlighten me with any case law, highly obliged.
19 October 2010
I feel any income from property should be Income from house property whether its used for residential or commercial. However exception is only when property is held as stock in trade
19 October 2010
If the ITO had wrongly trated the income as B& F in the A. year 2006-07, It is not necessary that other ITO will also take it wrongly. Every assesment is a fresh one. The ITo for the A. year 2008-09 has right to issue the notice u/s 143(2), if he is not satisfied with the return.
19 October 2010
If you are not doing any other business and the property is held as stock and main business is for letting than only you can consider itbusiness income... Or else its IHP.
19 October 2010
The principle of res judicata is not applicable for income tax cases and therefore each years assessment has to be viewed separately. If the assessee satisfies the provisions of section 22 of the Income tax Act,1961, no doubt the view of the ITO will sustain.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Off Market debit and credit transaction
- Reporting Income under Section 44ADA
- Itr 1 processing
- ITR 2 Short Term gain & Long term gain
- Showing Gift from relative in ITR for this year
- Share accounting-->fifo - capital gain - period as per fifo?
- ITR selection for salaries and capital gain less than L
- Short Term Capital gain on shares bought and sold after 2018 onwards
- ITR returnFY25-26
- INCOME TAX ON REDEVELOPEMENT OF FLAT
- ITR validation error - Balance sheet is not filled
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
