COMMISSIONER OF INCOME TAX Vs. FRANCIS WACZIARG

JUDGEMENT

(1.) With the consent of the learned counsel for the parties, the present appeal under Section 260A of the Income Tax Act, 1961 (Act, for short) against the order of the Income Tax Appellate Tribunal (Tribunal, for short) dated 23rd April, 2010, relating to the assessment year 2003-04 in the case of Francis Wacziarg, was taken up for hearing and disposal.

(2.) As several separate subject matters/issues are raised, it will be appropriate to deal with them under separate headings.

(3.) The assessing officer had held that income of Rs.13,27,855/- and Rs.1,20,000/- (total Rs.14,47,855/-) received from Neemrana Hotels Private Limited (NHPL, for short) towards and on account of Pondicherry and Ramgarh properties were rental income. The assessing officer observed that these properties were being run as hotels by NHPL and possession of the properties was transferred to them, while ownership remained with the assessee. The reasoning given by the assessing officer is as under:-