Treatment of rental income from commercial properties as income under the head ‘House Property’ instead of 'Income from Business Income'

IN THE INCOME TAX APPELLATE TRIBUNAL,
DELHI BENCH: ‘B’ NEW DELHI

BEFORE SHRI O.P. KANT, ACCOUNTANT MEMBER
AND
MS. SUCHITRA KAMBLE, JUDICIAL MEMBER
[Through Video Conferencing]

ITA No.6936/Del./2017
Assessment Year: 2013-14

M/s. Discovery Estates Pvt.
Ltd.,
17-B, MGF House, Asaf Ali
Road,
New Delhi
(Appellant) 

Vs. 

ACIT,
Circle-7(2),
New Delhi
PAN :AABCD4163D
(Respondent) 

Appellant by None
Respondent by Shri Rajesh Kumar, Sr.DR
Date of hearing 18.03.2021
Date of pronouncement 26.03.2021

ORDER

PER O.P. KANT, AM:
 
This appeal is directed against the order dated 31st August, 2017 passed by the learned Commissioner of Income-tax (Appeals)-43, New Delhi [in short “the learned CIT(A)’] for assessment year 2013-14 raising the following grounds:

Ground No. 1:
The Ld. Commissioner of Income Tax (Appeals)-32, New Delhi[hereinafter referred to as ‘CIT(A)’] has erred on facts and in law inpassing the order dated 31.08.2017 under section 250 of the Income Tax Act, 1961(hereinafter referred to as ‘the Act’)

Ground no. 2:
The Ld. CIT(A) erred on facts and in law in holding that the Assessing Officer is correct in treating the rental income earned of by the appellant from commercial properties as income under the head ‘House Property’instead of Income from Business Income.

Ground No. 3:
The appellant prays that he may be allowed to add, amed, alter or forego any of the above grounds of appeal as the circumstances may warrant.

Ground 4:
The above grounds are without prejudice to each other.

2. The facts in brief of the case are that the assessee wasengaged in the business of construction of the commercialcomplex and also earning rental income. The return of incomewas filed by the assessee for the year under consideration on13.09.2014, declaring income or Rs.2,67,02,200/-. The case wasselected for scrutiny and assessment under Section 143(3) of theIncome-tax Act, 1961 (in short ‘the Act’) was completed after treating the rental income under the head ‘Income from House Property’ instead of income under the head “Profit and Gains of Business or Profession’ offered by the assessee in the return of income. 

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