B.C. Meena, Accountant Member - This appeal filed by the assessee emanates from the order of CIT (Appeals)-III, New Delhi dated 03.10.2011 for the assessment year 2006-07.

2. The assessee is a company incorporated on 07.11.1996 and engaged in the business of real estate development. The assessee has declared a sum of Rs. 82,07,161/- under the head income from house property and the details of which are as under :-

Assessee also claimed deduction u/s 24(1) of Rs. 24,62,148/-. The Assessing Officer took a view that out of the total income of Rs. 82,07,161/- declared under the head "income from house property", the amount of Rs. 48,07,198/- received consisting of signage rent of Rs. 7,98,000/-, parking rent of Rs. 24,50,237/-, terrace rent of Rs. 1,00,000/- and license fees of Rs. 12,29,000/- is to be taxed under the head "profits or gains of business". The CIT (A) held that the income should be taxed under the head "income from other sources". Against which assessee is in appeal before us in respect of licence fee and parking rent.

3. The grounds of appeal read as under :-

"1. That on the facts and circumstances of the case, the CIT(A) was not justified in not accepting claim of the assessee that licence fee and parking rent is to be considered under the head income from house property as same is part of renting in accordance with provisions of sec. 22 of the Income Tax Act, 1961.

2(i) That finding of the CIT(A) that income from licence fee and parking of rent is assessable under the head other sources even though there was no such ground or finding of the Assessing Officer and as such these observations were without any legal basis or in the context of any such claim or controversy.

(ii) That only issue before CIT(A) was whether income from licence fee and parking of rent is to be considered under the head property or under the head business as held by the Assessing Officer and as such the finding and conclusion of the CIT(A) is not in respect of any dispute or ground that such income is required to be considered under the head other sources.

(iii) That finding and conclusion of the CIT(A) is without jurisdiction and out of context and same is not sustainable under the law.

3. That Assessing Officer may be directed to consider income from licence fee and parking of rent as assessable under the head income from house property and to allow consequential rebate u/s. 24(1) of the Income Tax Act, 1961.

4. That the orders of the lower authorities are not justified on facts and same are bad in law."

Thus, the dispute in the appeal involved is only regarding the taxability under the head Income in respect of income from license fee and parking rent. Assessee claims it as income under the head income from house property and CIT (A) held it as income from other sources.

4. While pleading on behalf of the assessee, the learned AR submitted that assessee is engaged in the business of real estate development and the income has been earned by letting out its properties to various persons. Ld. AR also pleaded that the Assessing Officer took a view that only the income which falls under section 22 and 23 of Income-tax Act is purely limited to residential and commercial properties. He pleaded that various circulars issued by the department are in support of the view taken by the assessee. The tax has been deducted by payer of amount by treating the amount as rent under section 194I of the Income-tax Act. He also pleaded that the circulars of the CBDT made it clear that any income attracted from letting out of the land or building is assessable under section 22 and 23 of the Income-tax Ac