Procter and Gamble Home Products (P.) Ltd. v. ITO [2023] 150 taxmann.com 124 (Bom)(HC)

S. 254(1) : Appellate Tribunal–Powers–Notional income-Income from house property or Income from other sources–Tribunal has no power to review earlier order–Order of Tribunal is stayed. [S. 22, 23, 56, 254(2), Art. 226]

Assessing Officer held that amount received by assessee as rent was to be taxed as income from other sources. Tribunal upheld said order and directed Assessing Officer to recompute same. Assessee filed rectification application challenging said order on ground that Tribunal failed to address issue whether notional income could be brought to be tax under head ‘income from other source. Tribunal pursuant to applications recalled matter and fixed matter for passing order de novo. Tribunal however passed impugned order holding that rent income of assessee was to be treated as income from house property. On writ the the assessee contended that consequence of rectification application filed by assessee being allowed was only to extent that issue regarding taxability of a notional income had to be considered. Since the Tribunal by virtue of impugned order reviewed its earlier order in which it was specifically ordered that income was to be treated as ‘income from other sources’, The order of the Tribunal was stayed. Petition was fixed for hearing on 30-10-2023 (AY. 2004-05)