1. These 12 appeals are preferred by the assessees against the order passed by the Tribunal holding that the rental received by the assessees from letting out work stations, air conditioners, electrical fittings, fire detectors etc., are to be bifurcated under the heading of ‘income from other sources’ and not ‘income from house property.’

2. The substantial question of law that arises for consideration in all these appeals is as under:-

“1) Whether the Tribunal was justified in holding that the rental income received by the assesses from letting out the building together with furniture, fixtures and equipments should be bifurcated under two heads.

a) income from house property?

b) income from other sources?”

In so far as the income from furniture, fixtures and equipments is concerned not the entire rental income under the heading of income from house property the income is to be assessed as income from house property.

3. The assessees in all these appeals are co-owners of the property situated at 13, 14, 15 & 16 Magrath Road, Bangalore. The said property was given on joint development to M/s. Embassy Classic Private Limited. After the transfer of the portion of the interest in the property in favour of the developer or its nominees in terms of the joint development agreement, the assessees had reported long term capital gains. The assessees had filed returns under Section 143(1) of the Income Tax Act, 1961, (hereinafter referred to as ‘the Act’ for short). The proceedings under Section 132 of the Act was initiated by the Department in the premises of the assessees on 9-4-2005. No income or assets let alone undisclosed or the concealed income was found. After the completion of the search operations notices were issued under Section 153-A and 139 (1) of the Act for the assessment years 2000-01 to 2005-06 calling upon the assessees to file returns of the income for the said years. The assessees filed their replies on 20-4-2006 and requested the assessing authority to treat the returns of income filed earlier under Section 139(1) of the Act, as the returns of the income in response to the notices issued under Section 153-A of the Act. The assessing officer thereafter proceeded to pass orders on 28-12-2007 for all years 2000-01 to 2003-04. The assessing officer accepted the income reported by the assessee. The assessing officer computed the long term capital gains on the joint development at Rs.53,07,353/- as against Rs.46,35,694/-shown by the assesses in the return of the income. The assessing authority brought to tax the furniture, fixtures and equipment and hire charges shown under the heading “other sources” by the assesses under the heading “Income from house property” thereby denying the deduction claimed by the assesses for the interest paid on the monies borrowed from ICICI bank for providing the said amenities and the depreciation allowance on the furniture, fixtures and equipment. Thus aggrieved by the same, the assesses preferred an appeal to the Commissioner of Income-Tax (Appeals). The appellate authority granted relief to the assesses in so far as computation of long term capital gains is concerned. However, in other aspects the order of the assessing officer was confirmed. The assesses preferred an appeal to the Tribunal challenging that portion of the order which did not give them the relief.

4. The Tribunal recorded a finding that both the authorities below misdirected themselves in disallowing the depreciation and interest on the income of hiring charges rendered by the assesses as “income from other sources.” Aggrieved by this portion of the order of the Tribunal the revenue has preferred these appeals.

5. The learned counsel appearing for the revenue assailing the impugned order contends that the material on record discloses that the assesses have let out the premises along with furniture and fixtures to the lessees under a common lease deed. Without those furniture and fixtures, the shell portion o