Integrated Proteins Ltd, JAMNAGAR V. The Income Tax Officer, Ward 1 (1), JAMNAGAR

ITA 1222/RJT/2010

• Counselvise Citation: [2011] 119 COUNSELVISE.COM (IT) 7360 (ITAT-RAJKOT)
• Duration Of Justice: 1 year(s) 2 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-12-2011
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 12-12-2011
• Assessment Year: 2001-2002
• Appeal Filed On: 18-10-2010
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: MK SINGH
• Assessee Lawyers: J C RANPUA DATE PF HEARING
• Keywords: Business income

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, RAJKOT BENCH, RAJKOT. BEFORE SHRI T. K. SHARMA (JM) AND SHRI A. L. GEHL OT AM). ITA NO. 1222/RJT/2010. (ASSESSMENT YEAR 2001-02). INTEGRATED PROTEINS LTD., VS THE I.T.O., WARD-1(1), CITY POINT, NR. TOWN HALL, JAMNAGAR. JAMNAGAR. PAN:AAACI7932G. (APPELLANT) (RESPONDENT) REVENUE BY : SHRI M. K. SINGH, D. R. ASSESSEE BY : SHRI J. C. RANPUA.. DATE PF HEARING : 12-12-2011. DATE OF PRONOUNCEMENT : 22-12-2011. O R D E R. PER A. L. GEHLOT (A.M.) : THIS APPEAL IS FILED BY ASSESSEE AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS), JAMN AGAR DATED 05-082010 FOR THE ASSESSMENT YEAR 2001-02. 2. THE EFFECTIVE GROUND RAISED IN THE APPEAL IS WHE THER THE INCOME OF THE ASSESSEE IS ASSESSABLE AS INCOME FROM PROPERTY OR I NCOME FROM OTHER SOURCES. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E IS A LIMITED COMPANY FOR MANUFACTURING SOLVENT EXTRACTION PRODUCTS LIKE DE-O ILED CAKES, REFINED OIL AND OTHER EDIBLE OIL PRODUCTS. THE ASSESSEE LET OUT IT S PLANT, MACHINERY AND OFFICE AND FACTORY BUILDING AS COMPOSITE LEASE AGREEMENT T O SILVER PROTEINS PVT. LTD., JAMNAGAR AND ALSO LEASED OUT ITS OPEN PLOTS TO ARCA DIA SHIPPING & TRADING CO., JAMNAGAR. THE AO HELD THAT THE RENTAL RECEIPTS FRO M LEASED OUT ASSETS IN ORDER TO QUALIFY AS BUSINESS INCOME MUST HAVE SOME NEXUS OR BE THE RESULT OF SOME BUSINESS ACTIVITIES AND NOT MERELY THE RESULT OF OW NERSHIP. THE AO HELD THAT LEASING OUT OF GODOWN HAD TO BE TAXED UNDER THE HEA D INCOME FROM HOUSE ITA 1222-RJT-2010 A.Y.2001-02. 2 PROPERTY WHILE INCOME FROM LEASING OUT OF PLANT AND MACHINERY, PLOT OF LAND WAS TO BE TAXED AS INCOME FROM OTHER SOURCES. THE CIT(A ) FOLLOWED THE ASSESSEES OWN CASE FOR A.Y.2004-05 WHERE THE ORDER OF THE AO HAS BEEN CONFIRMED. 4. WE HAVE HEARD THE LEARNED REPRESENTATIVES OF THE PARTIES, RECORD PERUSED. THE LD. A.R. SUBMITTED THAT IN A.Y.2004-05 THE ASSE SSEE DID NOT FURNISH ANY FURTHER APPEAL AGAINST THE CIT(A). SINCE THE FACTS ARE IDENTICAL TO A.Y. 2004-05, AND THAT ORDER BECOME FINAL UNDER THE CIRCUMSTANCES , WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF CIT(A). 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DIS MISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 22-12-2011. SD/- SD/- ( T. K. SHARMA ), ( A. L. GEHLOT ), JUDICIAL MEMBER. ACCOUNTANT MEMBER. RAJKOT. DATED: 22-12-2011. NVA/ COPY TO:- 1.INTEGRATED PROTEINS LTD., JAMNAGAR. 2.THE I.T.O., WARD 1(1), JAMNAGAR. 3.THE C.I.T.(A)-II, RAJKOT. 4.THE C.I.T., RAJKOT. 5.THE D.R., ITAT, RAJKOT. TRUE COPY. BY ORDER, ASSTT. REGISTRAR, ITAT,RAJKOT.