MAHESH INVESTMENTS Vs. ASST. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) This appeal under section 260-A of the Income Tax Act, 1961 [for short 'the Act'] Is by the Assessee and is directed against the common order dated 31.05.2012 passed by the Income Tax Appellate Tribunal, Bangalore Bench, Bangalore, in ITA Nos.960 & 961/Bang/2010 and relating the assessment years 2003-04, 2005-06. However, the present appeal is confined to the common order insofar as it relates to the assessment year 2005-06 and with reference to ITA No.961/Bang/2010 before the Tribunal.

(2.) The very facts leading to the present appeal is that the assessee had filed return of income for this year and even while the assessee had claimed its status as partnership firm and had returned certain income under the heading 'business' which was relatable to the income from leasing of the properties of the assessee and even before finalization of the return and passing of the assessment order, the assessee had been issued with notice under section 148 of the Act and on being pointed out that notice under section 148 of the Act cannot be issued even when the return filed by the assessee still to be processed and assessed, but nevertheless, the Assessing Officer proceeded to pass assessment order overlooking this objection raised as per the assessment order dated 30.07.2007 passed under section 143 read with section 147[3] Of the Act and assessing the assessee in the status of the firm, but treating the income as from house property, as against the claim of the assessee that it should be assessed under the head 'business income'.

(3.) It also appears that only income of the assessee was from such leasing activity which was the lease of commercial complex owned and developed by the assessee.