(1.) In these appeals, filed under Section 260A of the Income-tax Act, in short, 'Act', common question of law and facts are involved. The appeals were admitted on common substantial question of law, hence are being decided by the present common judgment. Income-tax Appeal No. 127 of 2005 is taken up as leading appeal.
(2.) Assessee is a firm engaged in the business of manufacture and sale of heavy pipes and coolers. It took on lease a plot of land from Lucknow Development Authority (in short L.D.A.), at Nishadganj, Lucknow for construction of a commercial complex with the name and title of "Goel Complex". The assessee's registered office is also located there. The assessee let out the open space of its complex in assessment year 1986-87 and the rental income so earned was offered for taxation under the head, 'Profits and gains of business or profession'.
(3.) Right from the assessment years 1986-87 to 1992-93, the department accepted the claim of the assessee to the effect that the rental income was taxable under the head, 'Profits and gains of business or profession'.