Raghuram Garikapati,Hyderabad, Hyderabad V. ITO (International Taxation)-I, Hyd, Hyderabad

ITA 1290/HYD/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 2656 (ITAT-HYDERABAD)
• Duration Of Justice: 5 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-04-2017
• Appeal Filed By: Assessee
• Bench Allotted: A
• Assessment Year: 2011-2012
• Appeal Filed On: 05-10-2016
• Court: TRIBUNAL
• Keywords: Business income; Depreciation; Question of law

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES A, HYDERABAD BEFORE SHRI D. MANMOHAN, VICE PRESIDENT AND SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER I.T.A. NO. 1290/HYD/2016 ASSESSMENT YEAR: 2011-12 SRI G. RAGHU RAM, REP. BY GPA SMT. PRAMEELA DEVI, HYDERABAD [PAN: AHXPG7433R] VS INCOME TAX OFFICER, (INTERNATIONAL TAXATION)-1, HYDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI P. VINOD, AR FOR REVENUE : SHRI A. SITARAMA RAO, DR DATE OF HEARING : 03-04-2017 DATE OF PRONOUNCEMENT : 03-04-2017 O R D E R U/S. 158A PER B. RAMAKOTAIAH, A.M. : THIS APPEAL IS FILED BY ASSESSEE AGAINST THE ORDER O F THE COMMISSIONER OF INCOME TAX (APPEALS)-10 , HYDERABAD DATED 14-06-2016. THE GROUND TAKEN BY ASSESSEE IN THIS YEA R IS AS UNDER: 2. THE LEARNED CIT(A) ERRED IN CONFIRMING THE ACTI ON OF THE AO IN HOLDING THAT THE INCOME FROM AMENITIES IS TO BE TRE ATED AS INCOME FROM PROPERTY WITHOUT APPRECIATING THE FACT THAT ARE BRO UGHT ON RECORD IN THE CASE OF LULLA BROTHERS TRUST TO COMPARE WITH THAT O F THE ASSESSEE AND THAT THE ITAT DECISION FOR THE AY. 2005-06 IS BASED ON M ISCONCEPTION OF FACTS. I.T.A. NO. 1290/HYD/2016 SRI G. RAGHU RAM :- 2 - : 2. BRIEFLY STATED, ASSESSEE HAS LET-OUT A PROPERTY BY WAY OF TWO AGREEMENTS. THE RENT WAS OFFERED UNDER THE HEAD INCO ME FROM HOUSE PROPERTY WHEREAS THE HIRE CHARGES RECEIVED FR OM HIRE OF EQUIPMENT, INTERIORS AND FURNITURE WAS OFFERED UNDER THE HEAD INCOME FROM BUSINESS AND CLAIMED DEPRECIATION, WHI CH RESULTED IN NET LOSS. THE ISSUE IS ARISING FROM AY. 2005-06 ONW ARDS AND ASSESSEE HAS BEEN CLAIMING HIRE CHARGES RECEIVED AS BUSINESS INCOME AND ASSESSING OFFICER (AO) HAS BEEN CONSIDE RING THE SAME AS INCOME FROM HOUSE PROPERTY AND THE CLAIM OF DE PRECIATION IS BEING DISALLOWED. AGAINST THESE ORDERS, ASSESSEE PRE FERRED APPEALS BEFORE THE CIT(A) AND ALSO BEFORE THE ITAT IN EARLIER YEARS. THE ITAT VIDE ORDER DT. 30-04-2010 HELD THAT HIRE CHARGES RECEIVED BY ASSESSEE IS ASSESSABLE UNDER THE HEAD INCOME FROM H OUSE PROPERTY ONLY, THEREBY UPHOLDING THE AOS STAND. LD .CIT(A) FOLLOWING THE ORDER OF THE ITAT IN EARLIER YEAR, UPHE LD THE ACTION OF THE AO IN THIS ASSESSMENT YEAR AS WELL. ASSESSEE IS I N APPEAL BEFORE US. 3. LD.AR OF ASSESSEE HAS FAIRLY SUBMITTED THAT IN THE CASE OF ASSESSEE AND OTHER GROUP CASES, ON SIMILAR FACTS, THE ISSUE IS PENDING BEFORE THE HON'BLE HIGH COURT ON VARIOUS QUES TIONS OF LAW AND THE SAME HAS BEEN ADMITTED. IT WAS THEREFORE SUBMI TTED THAT ASSESSEE SHALL BE BOUND BY THE ORDER AS MAY BE PASSE D BY THE HON'BLE HIGH COURT IN APPEAL NO. ITTA NO. 435 OF 201 0 AND 517/2010. ASSESSEE FILED AN APPLICATION U/S. 158A( 1) IN FORM NO. 8 FOR THE IMPUGNED YEAR. 4. LD.DR HAS NO OBJECTION TO ACCEPT THE FORM. I.T.A. NO. 1290/HYD/2016 SRI G. RAGHU RAM :- 3 - : 5. WE HAVE CONSIDERED THE RIVAL CONTENTIONS AND PERUSE D THE MATERIAL AVAILABLE ON RECORD. IDENTICAL QUESTION OF LAW IS PENDING FOR ADJUDICATION BEFORE THE HON'BLE HIGH COURT AND A D ECLARATION U/S. 158(A)(1) OF THE ACT HAS BEEN FILED BY ASSESSEE BEFORE US STATING THAT THE MATTER IS PENDING BEFORE THE HON'BLE HIGH COURT FOR ADJUDICATION AND ASSESSEE WOULD ABIDE BY THAT DECISIO N. IN VIEW THEREOF, AO IS DIRECTED TO APPLY THE DECISION FOR THE IMPUGNED ASSESSMENT YEAR AS WELL AS AND WHEN RENDERED BY THE H ON'BLE HIGH COURT OF JUDICATURE AT HYDERABAD, IN VIEW OF SECTION 158(5) OF THE ACT. 6. IN THE RESULT, APPEAL OF ASSESSEE IS DISMISSED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 3 RD APRIL, 2017 UPON CONCLUSION OF HEARING SD/- SD/- (D. MANMOHAN) (B. RAMAKOTAIAH) VICE PRESIDENT ACCOUNTANT MEMB ER HYDERABAD, DATED 3 RD APRIL, 2017 TNMM I.T.A. NO. 1290/HYD/2016 SRI G. RAGHU RAM :- 4 - : COPY TO : 1. SRI G. RAGHU RAM, HYDERABAD. C/O. K. VASANT KUMA R, A.V. RAGHU RAM, P. VINOD & M. NEELIMA DEVI, ADVOCAT ES, 610, BABUKHAN ESTATE, BASHEERBAGH, HYDERABAD. 2. INCOME TAX OFFICER, (INTERNATIONAL TAXATION)-1, HYDERABAD. 3. CIT (APPEALS)-10, HYDERABAD. 4. CIT(IT & TP), HYDERABAD. 5. D.R. ITAT, HYDERABAD. 6. GUARD FILE.