- (1.) ALL the aforesaid appeals have been filed under section 260A of the Income Tax Act, 1961, against the judgment and order dt. 31 -8 -2006 and 12 -1 -2007 passed by the Tribunal, Lucknow in ITA Nos. 447/Luck/2001; 138/Luck/2002; 139/Luck/2002; 242/Luck/2002; 339/Luck/2005 and 735/Luck/2003, for the assessment years (1995 -96 to 2000 -01) mentioned above.
(2.) ON 24 -7 -2007, a Co -ordinate Bench of this Court has admitted the appeals on the following substantial questions of law: "(A) Whether the Tribunal was legally correct in holding that income from letting out of shops which formed part of the overall business activities of the assessee, was assessable as income under the head Income from house property and on that ground in not allowing its claim for deduction of interest amounting to Rs. 10,29,788 under section 36(1)(iii) of the Act? (B) Whether on a true and correct interpretation of the provisions of section 36(1)(iii) of the Act, the Tribunal was legally correct in upholding the disallowance, simply on the ground that income from the business assets came to be assessed under the head of Income from house property? (C) Whether the Tribunal was legally correct in upholding the disallowance of interest to the extent of Rs. 8,80,668 (out of Rs. 10,29,788) as was undisputedly referable to the borrowings that had been made for setting up of business in the year 1982 under the name of "Nirmala Sahu Business Complex"? (D) Whether on a true and correct interpretation of the provisions of section 24(1)(vi) the Tribunal is legally correct in holding that interest on accumulated arrears of interest was not allowable as deduction - The same questions were framed in IT Appeal Nos. 50, 51, 52 and 53 of 2007 but disallowed amount is different in each appeal.
(3.) FURTHER Co -ordinate Bench of this Court in IT Appeal No. 49 of 2007 has framed an additional substantial question of law, which reads as: "Whether the assessing authority or appellate authority while deciding the dispute with regard to assessment of tax may travel beyond reference/claims/disclosure made in regular income -tax (return) filed under section 139 of the Income Tax Act and other statutory provisions - The brief facts of the case are that during the assessment year 1983 -84, the assessee has constructed a commercial complex known as "Nirmala Sahu Business Complex" Sitapur Road, Lucknow where the shops on the ground floor and a few residential flats were constructed at the first floor. All the units including the shops and flats were put on sale as and when there was a demand for the same. A few units were not sold out due to steep decline in market demand. However, these units were kept as stock -in -trade being business asset. As a prudent businessman, a few units were let out for short period. The assessee has received the rent and the rental income was shown by the assessee under the head "Income from house property". However, during the assessment year under consideration, the assessee has claimed the rental income under the head of the "Income from the business". The claim was disallowed by the lower authorities including the Tribunal. Still not being satisfied, the assessee has filed the present appeals.;