Case Law Details
DECIDED BY: HIGH COURT OF ALLAHABAD, IN THE CASE OF: CIT Vs. Goel Builders APPEAL NO: ITA No. 127 of 2005, DECIDED ON May 24, 2010
______JUDGEMENT_____
1. In these appeals, filed under Section 260-A of the Income Tax Act, in short, Act, common question of law and facts are involved. The appeals were admitted on common substantial question of law, hence are being decided by the present common judgment. Income Tax Appeal No.127 of 2005 is taken up as leading appeal.
2. Assessee is a firm engaged in the business of manufacture and sale of heavy pipes and coolers. It took on lease a plot of land from Lucknow Development Authority (in short L.D.A.), at Nishadganj, Lucknow for construction of a commercial complex with the name and title of “Goel Complex”. The assessee’s registered office is also located there. The assessee let out the open space of its complex in assessment year 1986-1987 and the rental income so earned was offered for taxation under the head, ‘profits and gains of business or profession’.
3. Right from the assessment year 1986-87 to 1992-1993, the department accepted the claim of the asssessee to the effect that the rental income was taxable under the head, ‘profits and gains of business or profession’.
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if in this case Rent is treated as business income.
can service tax is applicable ?