Case Law Details
Sh. Naresh Kumar Anand HUF Vs Pr. CIT (ITAT Jalandhar)
Facts: Notice u/s 148 was issued on 09.02.2009 on the point that M/s. L&T paid an amount of INR 14 Lakhs to the assessee as lease rent for land which was declared by the assessee in its return under the head ‘Income from House Property’ after claiming deduction of INR 4,17,145 u/s 2(a).
AO contented that since lease rent was received for ‘open land’ the same is taxable under the head ‘Income from other sources’ and likewise disallowed deduction of INR 4,17,145.
Assessee submitted that there was a building on the leased land which was being used by the tenant, as per mutual understanding, for storage purpose. AO concluded that property let out by the assessee was building and land appurtenant thereto and hence income was correctly charged under the head ‘Income from House Property’. However, PR. CIT issued a notice stating why the order of AO may not be revised u/s 263.
Lessee in their letter 08.12.2009 clearly stated that on the leased land there was no building or any construction at the time of execution of lease agreement. Lessee stated that rent was paid by them for the barren land on which they have installed their RMC plant.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
