DCIT, New Delhi V. M/s. Jab Construction Pvt. Ltd., New Delhi

ITA 619/DEL/2013

• Counselvise Citation: 61920114 RSA 2013
• Duration Of Justice: 6 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-08-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 11-07-2013
• Assessment Year: 2006-2007
• Appeal Filed On: 01-02-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RENUKA JAIN

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH D NEW DELHI) BEFORE SHRI RAJ PAL YDAV, JUDICIAL MEMBER AND SHRI T.S. KAPOOR, ACCOUNTANT MEMBER I.T.A. NO.619 & 620/DEL/2013 ASSESSMENT YEAR : 2006-07 & 2007-08 DCIT, JAB CONSTRUCTION PVT. LTD., CIRCLE-4 (1), 301-BAKASHI HOUSE, NEW DELHI. V. 40-41, HNEHRU PLACE, N. DELHI. (APPELLANT) (RESPONDENT) PAN /GIR/NO. PAN /GIR/NO. PAN /GIR/NO. PAN /GIR/NO.AAACJ AAACJ AAACJ AAACJ- -- -0097 0097 0097 0097- -- -M MM M APPELLANT BY : MS. RENUKA JAIN, DR RESPONDENT BY : SHRI RAJESH JAIN, AR. ORDER PER TS KAPOOR, AM: THESE ARE TWO APPEALS FILED BY THE REVENUE AGAINST TH E ORDER OF LD CIT(A) BOTH DATED 14.11.2012. THE COMMON ISSUE INVOLV ED IN BOTH THE APPEALS IS AS TO WHETHER THE INCOME EARNED BY THE ASSESS EE WAS TO BE ASSESSED AS INCOME FROM HOUSE PROPERTY INSTEAD OF INCOME FROM OTHER SOURCES. FOR THE SAKE OF CONVENIENCE, THE GROUNDS OF A PPEALS FOR ASSESSMENT YEAR 2006-07 ARE REPRODUCED BELOW:- 1. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE C ASE AND IN LAW THE LD CIT(A) HAD ERRED IN DIRECTING THE ASSESSING OFFICER TO TAX THE LEASE RENT AND HIRE CHARGES UNDER THE HEAD I NCOME FROM HOUSE PROPERTY INSTEAD OF INCOME FROM OTHER SOURCES . 2. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE C ASE AND IN LAW THE LD CIT(A) HAD ERRED IN NOT CONSIDERING THE F ACT THAT IT HAS BEEN HELD IN THE CASE OF SULTAN BROS. PVT. LTD. V. CI T (1964) 51 ITR 353 (SC) THAT WHEREVER RENT CONSIST OF A COMPOSIT E RENT FOR BUILDING AND OTHER ASSETS, THE INCOME CAN NEITHER BE A SSESSED AS ITA NO619 & 620/DEL/2013 2 INCOME FROM HOUSE PROPERTY NOR AS INCOME FROM BUSINESS AND HAS TO BE ASSESSED UNDER THE RESIDUARY HEAD INCOME FROM O THER SOURCES. 3. THE APPELLANT CRAVES LEAVE TO ADD, ALTER OR AMEND AN Y GROUND OF APPEAL RAISED ABOVE AT THE TIME OF HEARING. 2. AT THE OUTSET, THE LD AR SUBMITTED THAT THE ISSUES AR E COVERED IN FAVOUR OF ASSESSEE BY EARLIER ORDER OF ITAT IN RESPECT OF ASSESSEE ITSELF FOR ASSESSMENT YEAR 2008-09 AND IN THIS RESPECT OUR ATTEN TION WAS INVITED TO PAPER BOOK PAGES 3-6 WHEREIN THE ORDER OF THE TRIBUNAL WAS PLACED. HIGHLIGHTING THE FACTS, THE LD AR BROUGHT TO OUR NOTICE THAT ASSESSEE HAD LET OUT PROPERTY AT B-8, JANGPURA NEW DELH I ALONG WITH EQUIPMENTS LIKE AIR CONDITIONING SYSTEM AND HAD DECLA RED ITS INCOME AS INCOME FROM HOUSE PROPERTY AND THUS CLAIMED DEDUCTI ON U/S 24(A). THE ASSESSING OFFICER TREATED THE SAME AS INCOME FROM OTH ER SOURCES AND DISALLOWED THE DEDUCTION. HE FURTHER SUBMITTED TH AT THE TRIBUNAL HAS BEEN CONTINUOUSLY DECIDING IN FAVOUR OF ASSESSEE AND IN THIS RESPECT THE TRIBUNAL ORDER FOR ASSESSMENT YEAR 2004-05 A ND 2005-06 PLACED AT PAPER BOOK PAGE 1-3 WERE ALSO BROUGHT TO OUR NOTICE. 3. THE LD DR ALSO AGREED THAT THE ISSUES WERE COVERED I N FAVOUR OF ASSESSEE BUT SHE PUT RELIANCE ON THE ORDER OF ASSESSING OFFI CER. 4. WE HAVE HEARD THE RIVAL SUBMISSIONS OF BOTH THE PAR TIES AND HAVE GONE THROUGH THE MATERIAL AVAILABLE ON RECORD. WE FIND THAT THE INCOME FROM THE SAME PROPERTY WAS BEING DECLARED BY THE ASSESSEE AS INCOME FROM HOUSE PROPERTY AND ASSESSING OFFICER HAD BE EN TREATING IT AS INCOME FROM OTHER SOURCES AND TRIBUNAL HAS BEEN DECI DING IN FAVOUR OF ASSESSEE. THE HON'BLE TRIBUNAL HAS DISCUSSED THIS ISSUE IN ITA NO619 & 620/DEL/2013 3 ASSESSMENT YEAR 2008-09 VIDE PARAS 3 TO 6 WHICH ARE REPR ODUCED BELOW:- 3. THE ASSESSING OFFICER DISALLOWED CLAIM OF ` .18,80,371/- IN TERMS OF SEC. 24(A) OF THE ACT. IT WAS SUBMITTED BEFORE THE CIT(A) THAT: DURING THE YEAR UNDER CONSIDERATION, THE ASSESSEE HAS RE CEIVED RENT FROM ITS PROPERTY AT B-8, JANGPURA NEW DELHI AM OUNTING TO ` ,.62,67,904/-. THE ASSESSEE HAD ALSO BEEN RECEIVING THIS RENTAL INCOME IN THE YEARS PRIOR TO THE YEAR UNDER CONSIDERA TION. THE ISSUE HAS ALREADY BEEN DEALT WITH BY THE CIT(A) AS WELL AS BY THE JURISDICTIONAL TRIBUNAL I.E. ITAT NEW DELHI IN THE C ASE OF THE ASSESSEE ITSELF AND THE MATTER HAS BEEN DECIDED IN FAVOUR OF THE ASSESSEE CONSISTENTLY. COPIES OF ORDER OF COMMISSIONER (APPE ALS) AS WELL AS ITAT NEW DELHI FOR ASSESSMENT YEAR 2004-05 AN D 2005-06 WERE SUBMITTED TO THE LD ASSESSING OFFICER VIDE LETTER DATED 11.11.2010. COPIES OF THE SAME ARE ENCLOSED FOR YOUR KIND REFERENCE. 4. AFTER CONSIDERING THE SUBMISSIONS, THE CIT(A) FOUND THAT ISSUE IS SQUARELY COVERED BY THE DECISION OF THE TRIBUNAL IN C ASE OF ASSESSEE ITSELF FOR ASSESSMENT YEAR 2004-05 & 2005-06 DECIDE D IN I.T.A. NOS.3591 & 3592/DEL/2009 VIDE ORDER DATED 15.10.2009. 5. LD DR PLACED RELIANCE ON THE ORDER OF ASSESSING OFFICER . LD COUNSEL FOR THE ASSESSEE, ON THE OTHER HAND, PLACED REL IANCE ON THE ORDER OF CIT(A). 6. AFTER CONSIDERING THE ORDERS OF ASSESSING OFFICER AND CIT (A), WE FIND NO INFIRMITY IN THE FINDING OF LD CIT(A) WHO A LLOWED THE ISSUE IN FAVOUR OF ASSESSEE FOLLOWING THE DECISION OF THE TRI BUNAL FOR ASSESSMENT YEAR 2004-05 & 2005-06 IN CASE OF ASSESSEE ITSELF. IT IS FURTHER SUBMITTED THAT LIKE CLAIMS FOR ASSESSMENT YEAR 2001-02 ITA NO619 & 620/DEL/2013 4 TO 2003-04 WERE ALSO ALLOWED BY THE TRIBUNAL IN FFAV OUR OF ASSESSEE. THEREFORE, SINCE THE ISSUE IS COVERED BY EARLIER ORDERS OF THE TRIBUNAL IN ASSESSEES OWN CASE ITSELF, WE UPHOLD THE ORDER OF CIT(A) ON THE ISSUE IN QUESTION ON THIS ISSUE. 5. WE FIND THAT ISSUES IN BOTH THE APPEALS ARE SIMILAR TO THE ISSUES IN ASSESSMENT YEAR 2008-09. THEREFORE, RESPECTFULLY FOLL OWING THE ORDER OF TRIBUNAL, WE ALSO HOLD THAT INCOME OF THE ASSESSEE HA D BEEN RIGHTLY TREATED AS INCOME FROM HOUSE PROPERTY. IN VIEW OF THE ABOVE, THE APPEALS OF THE REVENUE ARE DISMISSED. 6. IN THE RESULT, THE APPEALS FILED BY THE REVENUE AR E DISMISSED. 7. ORDER PRONOUNCED IN THE OPEN COURT ON 23RD DAY O F AUGUST, 2013. SD/- SD/- (RAJPAL YADAV ) (T.S. KAPOOR) JUDICIAL MEMBER ACCOUNTANT MEMBER DT. 23.8.2013. HMS COPY FORWARDED TO:- 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT (A)-, NEW DELHI. 5. THE DR, ITAT, LOKNAYAK BHAWAN, KHAN MARKET, NEW DEL HI. TRUE COPY. (ITAT, NEW DELHI). DATE OF HEARING 12.8.2013 DATE OF DICTATION 22.8.2013 DATE OF TYPING 22.8.2013 DATE OF ORDER SIGNED BY 23.8.2013 BOTH THE MEMBERS & PRONOUNCEMENT. ITA NO619 & 620/DEL/2013 5 DATE OF ORDER UPLOADED ON NET & SENT TO THE BENCH CONCERNED.