THE DCIT, Hyderabad V. M/s Om International Hotel Pvt.Limited, Hyderabad

ITA 524/HYD/2010

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 3108 (ITAT-HYDERABAD)
• Duration Of Justice: 2 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-07-2010
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2005-2006
• Appeal Filed On: 15-04-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K V N CHARYA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A', HYDERABAD BEFORE SHRI G.C.GUPTA, VICE PRESIDENT AND SHRI AKBER BASHA, ACCOUNTANT MEMEBR ITA NO.524/HYD/2010 ASSTT. YEAR 2005-06 DCIT, CIRCLE-16 (3) HYDERABAD V/S. M/S. OM INTERNATIONAL HOTEL (P) LTD, HYDERABAD (PAN NO.AAACO 2613 A) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI K.V.N. CHARYA, DR RESPONDENT BY : SHRI AJAY KUMAR O R D E R PER SHRI G.C. GUPTA, VICE PRESIDENT: THIS APPEAL BY THE REVENUE FOR THE ASSESSMENT YEAR 200 5-06 IS DIRECTED AGAINST THE ORDER OF THE CIT (A). THE GROUND S OF THE APPEAL OF THE ASSESSEE ARE AS UNDER: '1. WHETHER THE HON'BLE COMMISSIONER OF INCOME-TAX (APPEALS)-V, HYDERABAD IS CORRECT IN HOLDING THE RE NTAL INCOME RECEIVED BY THE ASSESSEE FROM LETTING OUT OF THE BUILDING TO THE BANK AS INCOME FROM BUSINESS 2. THE HON'BLE COMMISSIONER OF INCOME-TAX (APPEALS) OUGHT TO HAVE HELD THAT THE RENTAL INCOME RECEIVED BY THE ASSESSEE IS ASSESSABLE UNDER THE HEAD INCOME FROM H OUSE PROPERTY. RELIANCE IS PLACED ON THE FOLLOWING DECIS IONS OF JURISDICTIONAL HIGH COURTS: ITA NO.524/HYD/2010 OM INTERNATIONAL HOTEL (P) LTD.,HYDERABAD. 2 I. AMBICA TOBACCO CO. PVT. LTD., CS. CIT -172 ITR 343 II. GUNTUR MERCHANTS COTTON PRESS CO. LTD., VS. CIT-154 ITR 861. III. TRIPURASUNDARI COTTON PRESS CO. LTD., VS. CIT- 62 ITR 193 IV. BOLLA TIRAPANNA & SONS VS. CIT 71 ITR 209'. 2. THE LEARNED DEPARTMENTAL REPRESENTATIVE HAS RELIE D ON THE ORDER OF THE ASSESSING OFFICER. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ONLY ISSUE IN THIS APPEAL IS REGARDIN G THE ASSESSABILITY OF THE RENTAL INCOME RECEIVED BY THE ASSESSEE FROM LETTING OUT ITS BUILDING TO THE BANK AS INCOME FROM BU SINESS. HE SUBMITTED THAT THE ISSUE IS COVERED WITH THE DECISION OF T HE HYDERABAD TRIBUNAL IN ASSESSEE'S OWN CASE FOR THE ASSESSMENT YEAR 1998-9 9 AND 1999-2000 IN ITA NO.786 & 787/HYD/2003 DATED 8-9-200 6 WHEREIN HELD THAT THE RENTAL INCOME RECEIVED FROM ITS BUILDIN G BY THE ASSESSEE LET OUT TO THE BANK WAS ASSESSABLE AS INCOME FROM BUSINESS. 3. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND HAS PERUSE D THE ORDER OF THE HYDERABAD TRIBUNAL IN ASSESSEE'S OWN CASE FOR THE ASSESSMENT YEAR 1998-99 AND 1999-2000 (SUPRA). THE ISSUE OF ASSESSABILITY OF RENTAL INCOME FROM LETTING OUT OF BUILD ING TO THE BANK UNDER THE HEAD INCOME FROM BUSINESS IS COVERED IN FAVOUR OF THE ASSESSEE WITH THE DECISION OF THE COORDINATE BENCH OF THE HY DERABAD TRIBUNAL IN ASSESSEE'S OWN CASE FOR THE ASSESSMENT YEARS 1998-9 9 AND 1999-2000 ((SUPRA) AND ACCORDINGLY WE HOLD THAT THE R ENTAL INCOME IS ASSESSABLE IN THE HANDS OF THE ASSESSEE AS ' INCOME FROM BUSINESS ' ITA NO.524/HYD/2010 OM INTERNATIONAL HOTEL (P) LTD.,HYDERABAD. 3 AND ACCORDINGLY THE GROUNDS OF THE APPEAL OF THE REVEN UE ARE DISMISSED. 4. IN THE RESULT THE APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE COURT ON 09-07-2010. SD/- SD/- (AKBER BASHA) (G.C. GUPTA) ACCOUNTANT MEMBER VICE-PRESIDENT PVV/SPS DATE: 9TH JULY, 2010 COPY FORWARDED TO: 1. THE DY. COMMISSIONER OF INCOME TAX CIRCLE-16(3), 6T H FLOOR, AAYAKAR BHAVAN, BASHEERBAGH HYDERABAD 2. M/S OM INTERNATIONAL HOTEL PVT. LTD., 11-4-679, LA KDIKAPOOL, HYDERABAD 500004 3. THE COMMISSIONER OF INCOME-TAX (APPEALS)-V, HYDERABAD . 4. THE COMMISSIONER OF INCOME-TAX-IV, HYDERABAD 5 THE DEPARTMENTAL REPRESENTATIVE, ITAT, HYDERABAD.