Hire charges received on account of hiring of the motor-cars, office equipment, computer, furniture and fixture is business income- ITAT Mumbai

ACIT Vs M/s JPS Associates (ITAT Mumbai)- Revenue has raised a grievance against the finding of the Ld. CIT (A) that hire charges received on account of hiring of the motor-cars, office equipment, computer, furniture and fixture is to be treated as a business income. The Ld. D.R. vehemently argued that the assessee has not carried out any activity and hence, the same is to be treated as income from other sources. Per contra, Ld. Counsel submitted that the said income has been accepted by the A.O. as business income in the preceding assessment years.

The Ld. CIT (A) has also observed that in the preceding assessment year, assessments are completed u/s. 143(3) and the A.O. has accepted the hire charges as a business income. In our opinion, as the facts are identical, there should be consistency in the approach of the A.O. In the preceding year, the AO. himself has treated income of hire charges as the business income in the assessment completed u/s. 143(3). Hence, no different view can be taken. We, therefore, confirm the order of the Ld. CIT (A) treating the hire charges received from hiring of the business assets as income from business and accordingly, ground no.1 is dismissed.

IN THE INCOME TAX APPELLATE TRIBUNAL

“J” BENCH: MUMBAI

ITA No. 1542/Mum/2007  

(Assessment Year: 2003- 04)

ACIT Vs JPS Associates

ORDER