ITO 1(3)(1), MUMBAI V. ROYAL BUSINESS CENTRE, P LTD, MUMBAI

ITA 5003/MUM/2013

• Counselvise Citation: 500319914 RSA 2013
• Duration Of Justice: 2 year(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-07-2015
• Appeal Filed By: Department
• Bench Allotted: D
• Next Hearing Date: 11-02-2015
• Assessment Year: 2009-2010
• Appeal Filed On: 02-07-2013
• Court: TRIBUNAL
• Department Lawyers: LOVE KUMAR
• Keywords: Business income

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D , BENCH MUMBAI . , . . , BEFORE SHRI D. MANMOHAN, VP & SHRI R.C.SHARMA , A M ./ ITA NO. 5003 / MUM/20 1 3 ( / ASSESSMENT YEAR : 20 09 - 1 0 ) ITO - 1(3)(1), MUMBAI VS. M/S ROYAL BUSINESS CENTRE P. LTD., MARINE CHAMBERS,43A, NEW MARINE LINES, MUMBAI - 20 ./ ./ PAN/GIR NO. : A A AC R 3188 D ( / APPELLANT ) .. ( / RESPONDENT ) /REVENUE BY : SHRI LOVE KUMAR /ASSESSEE BY : SHRI DEEPAK T RALSHAWALA / DATE OF HEARING : 27 TH MAY , 201 5 / DATE OF PRONOUNCEMENT 08 - 07 - 2 015 / O R D E R PER R.C.SHARMA (A.M) : TH IS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF CIT(A) FOR THE ASSESSMENT YEAR 2009 - 2010. 2. THE ONLY GRIEVANCE OF THE REVENUE RELATES TO TREATMENT OF INCOME FROM BUSINESS CENTRE AS INCOME FROM HO USE PROPERTY. 3 . THE RIVAL CONTENTIONS HAVE BEEN HEARD AND RECORD PERUSED. THE ISSUE UNDER APPEAL IS RELATED TO ASSESSABILITY OF INCOME FROM HOUSE PROPERTY. ACCORDING TO THE AO ASSESSEE HAS RECEIVED CABIN SERVICE CHARGES, MEMBERSHIP AND SUBSCRIPTION CHARG ES, TELEPHONE, TELEX, FAX AND MISCELLANEOUS SERVICES WHICH IS TO BE REGARDED AS INCOME FROM HOUSE PROPERTY AND NOT INCOME AS BUSINESS INCOME. ITA NO. 5003 / 1 3 2 4. BY THE IMPUGNED ORDER, ,THE CIT(A) BY FOLLOWING THE ORDER OF TRIBUNAL IN EARLIER YEAR, HELD AS UNDER : - 3.3 I HAVE CONSIDERED THE BACKGROUND OF THE CASE AND FINDING OF THE ASSESSING OFFICER AS WELL AS DECISION OF THE CIT(A) AND HON'BLE ITAT, CAREFULLY. I FIND THAT THIS ISSUE HAS ALREADY BEEN DECIDED IN THE FAVOUR OF THE APPELLANT VIDE I.T.A.NO.4837/M/2006 DATED 14 .07.2009 FOR AY 2004 - 05. FOLLOWING THIS DECISION, LD. CIT(A) IN SUBSEQUENT YEAR IN AY 2007 - 08, CIT(A) - 2/IT - 708A/09 - 10 AND AY 2008 - 09, CIT(A) - 2/IT - 90/10 - 11 HAS ALSO DECIDED TH E ISSUE IN THE FAVOUR OF THE APPELLANT. THEREFORE, RESPECTFULLY FOLLOWING THE DECI SION OF THE CIT(A) AND HON'BLE ITAT, ASSESSING OFFICER IS HEREBY DIRECTED TO ASSESS SUCH INCOME UNDER REFERENCE AS INCOME UNDER THE HEAD PROFIT AND GAINS FROM BUSINESS OR PROFESSION AND NOT UNDER THE HEAD INCOME FROM HOUSE PROPERTY. 5. WE HAVE CONSIDERED RIVAL CONTENTIONS AND FOUND THAT THE ISSUE HAS BEEN CONSISTENTLY DECIDED BY THE TRIBUNAL IN FAVOUR OF ASSESSEE IN ASSESSEES OWN CASE . F OR THE ASSESSMENT YEAR 2004 - 05 VIDE ORDER DATED 14 - 7 - 2009 , T HE TRIBUNAL HELD AS UNDER : - 7. WE HAVE HEARD BOTH THE PART IES AND PERUSED THE ORDERS OF THE REVENUE AS WELL AS THE ORDERS OF THE TRIBUNAL RELIED UPON BY THE ASSESSEE. SO FAR AS THE BUSINESS OBJECT OF THE ASSESSEE IS CONCERNED, AS MENTIONED ABOVE, THE MAIN OBJECT OF THE COMPANY IS TO CARRY ON THE BUSINESS OF LET TING OUT OF THE PREMISES, SHI PS, BUSINESS SHIPMENTS, TABLES, OCCUPATIONS , OFFICE SPACE AND TO PROVIDE OTHER FACILITIES ALLOWED LIKE EMAIL ADDRESS, PASSENGER SERVICES, TELEPHONES, TELEX, FAX AND TELEPHONE SERVICES AND ALL KINDS OF SERVICES INCIDENTAL TO THE RUNNING OF THE BUSINESS CENTRE. SO FAR AS THE ACTUAL CONDUCTING OF THE BUSINESS IS CONCERNED, THE SAME ARE FOUND COVERED BY THE WR ITTEN OBJECTS OF THE COMPANY AS DISCUSSED ABOVE. 6. IN THE ASSESSMENT YEAR 2007 - 08 & 2008 - 09 ALSO THE TRIBUNAL FOLLOWED THE ORDER OF EARLIER YEARS. AS THE FACTS AND CIRCUMSTANCES OF THE CASE DURING THE YEAR UNDER CONSIDERATION ARE SAME, RESPECTFULLY FOLLOWING THE ORDER OF THE TRIBUNAL, WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF CIT(A) FOR TREATING THE INCOME OF BUSINESS C ENTRE AS INCOME FROM BUSINESS AND ITA NO. 5003 / 1 3 3 PROFESSION AND NOT AS INCOME FROM HOUSE PROPERTY. RECENTLY THE HONBLE SUPREME COURT IN THE CASE OF CHENNAI PROPERTIES AND INVESTMENTS LTD. VS. CIT, 373 ITR 673 , HELD THAT WHERE OBJECT OF COMPANYS BUSINESS IS LETTING OU T, INCOME IS LIABLE TO BE ASSESSED AS BUSINESS INCOME. 7. I N THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 08/07 / 201 5 . SD / - SD / - ( . ) ( D.MANMOHAN ) ( . . ) ( R.C.SHARMA ) / VICE PRESIDENT / ACCOUNTANT MEMBER MUMBAI ; DATED 08/07 / 201 5 . . /PKM , . / PS / COPY OF THE ORDER FORWARDED TO : / BY ORDER, / ( ASSTT. REGISTRAR) , / ITAT, MUMBAI 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A), MUMBAI. 4. / CIT 5. , , / DR, ITAT, MUMBAI 6 . / GUARD FILE. //TRUE COPY//