ACIT, Bhubaneswar V. M/s Royale Hotels Pvt. Ltd, Bhubaneswar

ITA 268/CTK/2010

• Counselvise Citation: [2011] 135 COUNSELVISE.COM (IT) 0803 (ITAT-CUTTACK)
• Duration Of Justice: 7 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-02-2011
• Appeal Filed By: Department
• Bench Allotted: DB
• Assessment Year: 2006-2007
• Appeal Filed On: 09-07-2010
• Court: TRIBUNAL
• Department Lawyers: B MOHANTY
• Assessee Lawyers: A K MAHAPATRA

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK ( ) BEFORE . . , , HONBLE SHRI K.K.GUPTA, ACCOUNTANT MEMBER. /AND . . . , S HRI K.S.S.PRASAD RAO , JUDICIAL MEMBER / I.T.A.NO. 268 AND 269/CTK/2010 / ASSESSMENT YEAR S 2006 - 07 AND 2007 - 08 ACIT, CIRCLE 1(1), BHUBANESWAR. - - - VERSUS - M/S.ROYALE HOTELS PVT.LD., 52/53, ASHOK NAGAR,JANPATH, BHUBANESWA R. PAN: AABCR 5397 P ( /APPELLANT ) ( / RESPONDENT ) / FOR THE APPELLANT : / SHRI B.MOHANTY, DR / FOR THE RESPONDENT: / SHRI A.K.MAHAPATRA, AR / ORDER . . , , SHRI K. K.GUPTA, ACCOUNTANT MEMBER. BOTH THESE APPEALS BY THE REVENUE AGITATE A COMMON ISSUE REGARDING ASSESSMENT OF INCOME IN THE NATURE OF RENT BY A HOTEL WHETHER COULD BE TAXED AS INCOME FROM BUSINESS AS PER THE CONTENTION OF THE ASSESSEE VIS - - VIS ASSESSED B Y THE ASSESSING OFFICER TO BE BROUGHT TO TAX AS INCOME FROM HOUSE PROPERTY. THE LEARNED CIT(A) CONFIRMED THE CONTENTION OF THE ASSESSEE RELYING ON THE DECISION OF THE TRIBUNAL IN ASSESSEES OWN CASE FOR THE EARLIER YEARS ON IDENTICAL NATURE OF INCOME AS CO NSIDERED BY THE AO FOR THESE TWO ASSESSMENT YEARS. 2. AT THE OUTSET THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED COPIES OF THE ORDERS OF THE ITAT, CUTTACK BENCH IN THE CASE OF THE ASSESSEE WHEN FOR THE ASSESSMENT YEAR 2001 - 02 THE ASSESSEE WAS IN APPEAL O N SIMILAR ISSUE CONSIDERED BY THE LEARNED CIT U/S.263 AND FOR THE ASSESSMENT YEAR 2000 - 01, 2002 - 03 AND 2004 - 05, THE REVENUE WAS IN APPEAL AGAINST THE ORDERS OF THE LEARNED CIT(A) HAVING ADJUDICATED THE CASE IN FAVOUR OF THE ASSESSEE BEING RECEIPTS FROM A BANK WHEN THE PREMISES OF THE HOTEL WERE LEASED OUT TO. THE I.T.A.NO. 268 AND 269/CTK/2010 2 TRIBUNAL HAD RELIED N THE DECISION OF HONBLE MADRAS HIGH COURT IN THE CASE OF MADRAS SILK AND RAYON MILLS P. LTD V. ITO (262 ITR 122) AND HONBLE APEX COURT IN THE CASE OF SHAMBHU INVESTMENT P. LTD. V. CIT (263 ITR 143)(SC) AND ALSO IN THE CASE OF UNIVERSAL PLANT LTD., & GUNTUR MERCHANTS COTTON PRESS CO. LTD (237 ITR 454)(SC). 3. THE LEARNED DR , HOWEVER, SUBMITTED THAT THE RELIANCE ON THE DECISION OF THE TRIBUNAL IN THE ASSESSEES OWN CASE FOR EARL IER YEARS HAD BEEN APPEALED AGAINST BEFORE THE HONBLE ORISSA HIGH COURT THEREFORE MAY BE CONSIDERED IN THE LIGHT OF THE FACT THAT THE ISSUE DECIDED BY THE LEARNED CIT(A) WAS PASSED ON THE TRIBUNAL ORDERS. 4 AFTER HEARING BOTH THE PARTIES, WE ARE INCLINED TO HOLD THAT THE VIEW TAKEN BY THE TRIBUNAL CONTINUES TO HOLD GOOD ON FACTS AS HAVE BEEN ENUMERATED BY THE ASSESSING OFFICER AND DEALT WITH BY THE LEARNED CIT(A). NO CONTROVERTING MATERIAL HAS BEEN BROUGHT ON RECORD BY THE LEARNED DR TO HOLD A VIEW OTHER T HAN WHAT HAS BEEN DECIDED EARLIER. FINDING NO INFIRMITY IN THE ORDER OF THE LEARNED CIT(A), WE HAVE NO HESITATION TO DISMISS THE APPEALS OF THE REVENUE. 5. IN THE RESULT, THE APPEALS OF THE REVENUE ARE DISMISSED. TH IS ORDER IS PRONOUNCED IN OPEN COURT ON DT. 18 TH FEBRUARY, 2011 S D/ - S D/ - ( . . . ) , ( K.S.S.PRASAD RAO), JUDICIAL MEMBER ( . . ) , , (K.K.GUPTA), ACCOUNTANT MEMBER. ( ) DATE: 18 TH FEBRUARY, 2011 ( ), ( H.K.PADHEE ), SENIOR.PRIVATE SECRETARY. I.T.A.NO. 268 AND 269/CTK/2010 3 - COPY OF THE ORDER FORWARDED TO: 1 . / THE APPELLANT : ACIT, CIRCLE 1(1), BHUBANESWAR 2 / THE RESPONDENT: M/S.ROYALE HOTELS PVT .LD., 52/53, ASHOK NAGAR,JANPATH, BHUBANESWAR. 3 . / THE CIT, 4 . ( )/ THE CIT(A), 5 . / DR, CUTTACK BENCH 6 . GUARD FILE . / TRUE COPY, / BY ORDER, [ ] SENIOR PRIVATE SECRETARY