- (1.) This appeal, under section 260A of the Income Tax Act, 1961 (for short the "Act"), has been preferred by the appellant against the order dated 14th December, 2004 passed by the Income Tax Appellate Tribunal, Kolkata in ITA Nos. 1276 (Kol) of 2004 for the assessment year 1996-97.
(2.) The appeal was admitted on the following substantial questions of law: "i) Whether the Tribunal was justified in law in holding that the appellant could not claim the assessment of the rental income under the head 'business' because the same was all along offered for assessment under the head 'house property'. ii) Whether the rental income earned by the appellant is assessable under the head 'business' and the compensation of Rs.53,50,000/- paid by it for obtaining possession from lessee/tenant so as to earn a higher income is an admissible revenue deduction and the purported findings of the Tribunal to the contrary are arbitrary, unreasonable and perverse?"
(3.) The facts are set out hereinafter. The appellant is a public limited company within the meaning of the Companies Act, 1956. The main objects specified in its Memorandum of Association (for short "Memorandum") is to acquire and develop properties and to deal with the same by way of sale, lease, letting out, etc.;