Law:

Section:

Section 28(i) of the Income-tax Act, 1961 - Business income - Chargeable as - Assessee was a company set up with prominent object to purchase, develop or acquire on lease lands, houses, buildings, etc., and to let them out on lease - During relevant assessment year, it received rental income from two properties out of which first property was directly owned by it and second one was acquired by it on lease - Assessing Officer treated said income as 'income from other sources' - On appeal, Commissioner (Appeals) as well as Tribunal recorded concurrent findings of fact that rental income received by assessee was assessable as business income - Whether concurrent holding of appellate authorities could be interfered with - Held, no FACTS The assessee-company was set up with prominent object to purchase, develop, take in exchange or on lease or otherwise acquire lands, houses, farm houses, buildings, etc., and to let them out on lease, rent, contract or any other agreements. During the relevant assessment year, it received rental income from 'J' in respect of a property at 'L' and from 'T' as well as 'S' in respect of the building in 'SE'. The property at 'L' was directly owned by the assessee, whereas the property in 'SE' had been acquired by it on lease. The assessee claimed said income as its business income, but the Assessing Officer held that the income derived by the assessee from the two properties was taxable as 'income from other sources'. On appeal, the Commissioner (Appeals) held that the rental income received by the assessee from the aforesaid two properties was its business income. The Tribunal upheld the order of the Commissioner (Appeals). On the revenue's appeal to the High Court : HELD The assessee was the owner of property in 'L'. Even after scrutiny carried out for the assessment years 1997-98 to 2000-01, the receipts were accepted as business income, which was indubitably a plausible view. Since no fresh facts had been brought to light, the consistency rules had been applied. Therefore, there was no error in the decision of the Tribunal in treating the income from said property as 'income from house property'. [Para 6] As regards the property let…

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