Badr Warehousing Corporation, Trichy V. ITO, Trichy

ITA 170/CHNY/2016

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 8927 (ITAT-CHENNAI)
• Duration Of Justice: 5 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-07-2016
• Appeal Filed By: Assessee
• Bench Allotted: C
• Next Hearing Date: 08-06-2016
• Assessment Year: 1999-2000
• Appeal Filed On: 01-02-2016
• Court: TRIBUNAL
• Department Lawyers: A V SREEKANTH
• Assessee Lawyers: V S JAYAKUMAR
• Keywords: Business income

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, CHENNAI , ! ' . #$ , % &' BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI DUVVURU RL REDDY, JUDICIAL MEMBER ./ ITA NOS. 169, 170 & 171/MDS/2016 / ASSESSMENT YEARS : 1988-89, 1999-2000 & 2000-01 M/S. BADRI WAREHOUSING CORPORATION, NO.23, KAJIAR STREET, BEEMA NAGAR, TRICHY 620 001. PAN AAAFB0624P APPELLANT) V. THE INCOME-TAX OFFICER, WARD-1(2), TRICHY. RESPONDENT) / APPELLANT BY : SHRI V.S.JAYAKUMAR, ADVOCATE / RESPONDENT BY : SHRI A.V.SREEKANTH, JCIT ! / DATE OF HEARING : 08.06.2016 '# ! / DATE OF PRONOUNCEMENT: 06.07.2016 ( / O R D E R PER CHANDRA POOJARI, ACCOUNTANT MEMBER THESE APPEALS BY THE ASSESSEE ARE DIRECTED AGAIN ST THE COMMON ORDER OF THE COMMISSIONER OF INCOME-TAX(APPE ALS) - - ITA 169 TO 171/ 16 2 DATED 30.11.2015 FOR THE ASSESSMENT YEARS 1988-89, 1999-2000 AND 2000-01. 2. THE FIRST COMMON GROUND IN ITA NOS. 169 & 170/MDS/2016 IS WITH REGARD TO REOPENING OF ASSESSM ENT. 3. AT THE TIME OF HEARING, THE LD. AR MADE A REIMBU RSEMENT THAT THIS GROUND IS NOT PRESSING IN BOTH THE APPEAL S. ACCORDINGLY, THIS GROUND IS DISMISSED IN ITA NOS.169 & 170/MDS/2 016. 4. THE NEXT COMMON GROUND IN ALL THESE APPEALS IS W ITH REGARD TO TREATING THE INCOME EARNED FROM LETTING O F WAREHOUSE AS INCOME FROM HOUSE PROPERTY. 5. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE M ATERIAL ON RECORD. IN THIS CASE, THE LOWER AUTHORITIES TR EATED THE INCOME EARNED FROM LETTING OF WAREHOUSE AS INCOME FROM HOU SE PROPERTY. HOWEVER, IN THE FOLLOWING CASES, IT IS H ELD THAT THE INCOME EARNED FROM LETTING OF WAREHOUSE IS INCOME F ROM BUSINESS AND NOT INCOME FROM HOUSE PROPERTY: 1. CIT V. LAKSHMI COMPANY (133 ITR 904)(MAD) 2. CIT V. B. NAGI REDDI (144 ITR 62) (MAD) 3. CIT V. INDIAN WAREHOUSING INDUSTRIES LTD. (258 I TR 93)(MAD) 4. CIT V. NDR WAREHOUSING PVT. LTD. (372 ITR 690)(M AD) - - ITA 169 TO 171/ 16 3 THE SAME VIEW WAS TAKEN BY THE CO-ORDINATE BENCH OF THIS TRIBUNAL IN THE CASE OF GHODAVAT PAN MASALA (INDIA) PVT. LTD. V. JCIT (108 ITD 603)(PUNE). HOWEVER, IN ASSESSEES O WN CASE FOR THE ASSESSMENT YEARS 1992-93 TO 1998-99, IN ITA NOS.37 TO 43/MDS/2003 (SMC), VIDE ORDER DATED 25.2.2005, IT W AS HELD THAT INCOME FROM LETTING OF WAREHOUSE IS ASSESSABLE TO T AX UNDER THE HEAD INCOME FROM HOUSE PROPERTY. SINCE, THERE ARE DECISIONS OF HIGH COURT HOLDING THAT INCOME FROM LETTING OF WARE HOUSE IS INCOME FROM BUSINESS INCOME, WE DIRECT THE AO TO TR EAT THE INCOME EARNED FROM LETTING OF WAREHOUSE AS INCOME F ROM BUSINESS AND THE ASSESSEE IS ENTITLED FOR DEDUCTION U/S. 30 TO 38 OF THE ACT. WITH THIS OBSERVATION, WE REMIT THIS I SSUE BACK TO THE FILE OF THE AO FOR COMPUTING THE INCOME. 6. THE NEXT ISSUE IN ALL THESE APPEALS IS WITH REGA RD TO REFUSAL OF REGISTRATION TO THE ASSESSEE-FIRM, AS TH E FIRM DID NOT CARRY ON ANY BUSINESS. SINCE, WE HAVE ALREADY OBS ERVED THAT THE INCOME EARNED BY THE ASSESSEE FROM LETTING OF W AREHOUSE IS TO BE COMPUTED AS INCOME FROM BUSINESS, WE REMIT TH IS ISSUE BACK TO THE FILE OF THE AO FOR FRESH CONSIDERATION. ACCORDINGLY, THIS GROUND IS ALLOWED FOR STATISTICAL PURPOSES. - - ITA 169 TO 171/ 16 4 7. IN THE RESULT, THE APPEALS OF THE ASSESSEE ARE P ARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON WEDNESDAY, THE 6 TH OF JULY, 2016 AT CHENNAI. SD/- SD/- ( $ % . & '( ) ( ) * + , ) DUVVURU RL REDDY - ./012304556037- 8 9: /JUDICIAL MEMBER ! 9:;<<5=1>01>?@AB@3 )8 /CHENNAI, C9 /DATED, THE 6 TH JULY, 2016. MPO* 9D EFGF /COPY TO: 1. /APPELLANT 2. /RESPONDENT 3. H- /CIT(A) 4. H /CIT 5. FIJ K /DR 6. J(L /GF.