Techno Shop Pvt. Ltd., Kolkata V. Income Tax Officer -ward 8(3), Kolkata, Kolkata

ITA 2/KOL/2014

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 7895 (ITAT-KOLKATA)
• Duration Of Justice: 11 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-12-2014
• Appeal Filed By: Assessee
• Bench Allotted: SMC
• Assessment Year: 1997-1998
• Appeal Filed On: 01-01-2014
• Court: TRIBUNAL
• Department Lawyers: K K TRIPATHI
• Assessee Lawyers: N O N E
• Keywords: Business income

Judgement Text

, SM C , IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH: KOLKATA ( ) BEFORE , ) [BEFORE SHRI MAHAVIR SINGH, JM] / I.T.A NO S . 02 & 03 /KOL/20 1 4 / ASSESSMENT YEAR S : 1997 - 98 & 1998 - 99 TECHNO SHOP PVT. LTD. VS. INCOME - TAX OFFICER, WD - 5 ( 3 ), (PAN:A ABCT1028M ) KOLKATA ( /APPELLANT ) ( / RESPONDENT ) DATE OF HEARING: 2 8 . 11 .201 4 DATE OF PRONOUNCEMENT: 02 . 1 2 .201 4 FOR THE APPELLANT : N O N E FOR THE RESPONDENT : SHRI K. K. TRIPATHI, JCIT, SR. DR / ORDER BOTH THESE APPEAL S BY ASSESSEE ARE ARI SING OUT OF ORDER OF CIT(A) - VIII , KOLKATA IN APPEAL NO S . 185 &184 /CIT(A) - VIII / KOL/08 - 09 DATED 09 . 09 .201 3 . ASSESSMENT S W ERE FRAMED BY ITO, WARD - 8 ( 3 ) , KOLKATA U/S. 254/ 14 3(3) OF THE INCOME - TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT ) FOR ASSESSMENT YEAR S 1997 - 98 & 1998 - 99 SEPARATELY VIDE HIS ORDER DATED 0 5 . 12 .20 08 . 2 . THE ONLY COMMON ISSUE IN TH E S E TWO APPEAL S OF ASSESSEE IS AGAINST THE ORDER OF CIT(A) CONFIRMING THE ACTION OF AO IN ASSESSING THE RENT RECEIVED FROM 12/1, LINDSAY STREET, KOLKATA IS INCOME FROM HOUSE PROPERTY AS AGAINST THE INCOME DECLARED BY THE ASSESSEE UNDER THE HEAD PROFITS AND GAINS O F BUSINESS OR PROFESSION. 3. BRIEFLY STATED FACTS IN THESE TWO YEARS ARE THAT THE ASSESSEE RECEIVED RENTAL INCOME AT RS.2,07,993/ - IN AY 1997 - 98 AND RS.2,04,798/ - IN AY 1998 - 99 AS RENT FROM TENANTS OF LEASEHOLD PROPERTY. BEFORE THE AO ASSESSEE CONTEND ED THAT THE ASSESSEE IS NOT OWNER OF ANY BUILDING OR LAND APPURTENANT THERETO IN VIEW OF TWO LEASE DEED DATED 12.03.1986 BUT IT BECAME OWNER OF A PORTION OF 12/1, LINDSAY STREET, KOLKATA I.E. GROUND, 1 ST AND 2 ND FLOOR BUT ACCORDING TO ASSESSEE, THE LEASE R ENTALS RECEIVED FROM THE LESSORS ARE BUSINESS INCOME AS DECLARED BY THE ASSESSEE. THE AO HAS NOT ACCEPTED THE CONTENTION OF THE ASSESSEE AND ASSESSED THE INCOME DECLARED UNDER THE HEAD PROFITS AND GAINS OF BUSINESS OR PROFESSION AS INCOME FROM HOUSE PROPE RTY. THE ASSESSEE HAS ACQUIRED THIS PROPERTY FOR 99 YEARS AND ALSO 2 ITA NO S . 02 & 03 /K/2014 TECHNO SHOP PVT. LTD. AY 1997 - 98 & 1998 - 99 ASSESSEE HAS ALL THE RIGHTS TO GIVE THE POSSESSION TO TENANTS AND SIGN AGREEMENT S FOR TENANCIES AS CONFIRMING PARTY. DURING THESE TWO YEARS NEW TENANTS WERE GIVEN POSSESSION AND ASSESSEE CONSTRUCTED TWO FLOORS IN THE SAID BUILDING. ONCE THIS IS THE POSITION, THE ASSESSEE IS THE OWNER OF THE PROPERTY AND IT HAS EARNED RENTAL INCOME BY LETTING OUT THIS PROPERTY. THE INCOME EARNED FROM PROPERTY I.E. EXPLOITING THE PROPERTY FOR REALIZING INC OME BY WAY OF RENT FROM THIS PROPERTY ACQUIRED FOR 99 YEARS ON LEASE IS NOTHING BUT INCOME FROM HOUSE PROPERTY. ACCORDINGLY, I AM OF THE VIEW THAT THE AO AS WELL AS THE CIT(A) HAS RIGHTLY ASSESSED THE INCOME EARNED FROM LETTING OUT THIS PROPERTY AS INCOME FROM HOUSE PROPERTY AND I CONFIRM THE SAME. THESE TWO APPEALS OF ASSESSEE ARE DISMISSED. 4 . IN THE RESULT, BOTH THE APPEAL S OF ASSESSEE ARE DISMISSED . 5 . ORDER IS PRONOUNCED IN THE OPEN COURT ON 0 2 . 1 2 . 2 0 1 4 S D / - , (MAHAVIR SINGH) JUDICIAL MEMBER DATED : 2 N D DECEMBER , 201 4 JD.(SR.P.S.) - COPY OF THE ORDER FORWARDED TO: 1 . / A PPELLANT TECHNO SHOP PVT. LTD., 12/1, LINDSAY STREET, 5 TH FLOOR, KOLKATA - 700 069 2 / RESPONDENT - ITO, WARD - 5(3), KOLKATA 3 . ( )/ THE CIT(A), KOLKATA 4. 5. / CIT KOLKATA / DR, KOLKATA BENCHES, KOLKATA / TRUE COPY, / BY ORDER, /ASSTT. REGISTRAR .