SHAH FEBTEX, MUMBAI V. CIIT-7, MUMBAI

ITA 6869/MUM/2014

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 0698 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 2 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-01-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Assessment Year: 2008-2009
• Appeal Filed On: 11-11-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V JUSTIN

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL E , BENCH MUMBAI BEFORE SHRI R.C.SHARMA, AM & SHRI PAWAN SINGH , JM ITA NO. 6869 / MUM/20 14 ( ASSESSMENT YEAR : 2008 - 09 ) M/S. SHAH FEBTEX 102, NEELKANT SAELAN HINGWALAL LANE, GHATKOPAR (W), MUMBAI 400 086 VS. C OMMISSIONER OF INCOME TAX (A) - 7, MUMBAI PAN/GIR NO. ABGFS8413E APPELLANT ) .. RESPONDENT ) ASSESSEE BY SHRI NILESH JOSHI REVENUE BY SHRI V. JUSTIN DATE OF HEARING 18 / 10 /201 7 DATE OF PRONOUNCEME NT 12 / 01 / 201 8 / O R D E R PER R.C.SHARMA (A.M) : THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A) - 7, MUMBAI DATED 30/07/2014 FOR A.Y.2008 - 09 IN THE MATTER OF ORDER PASSED U/S.143(3) OF THE IT ACT. 2. THE ONLY GRIEVANCE OF ASSESSEE RELATES TO T REATMENT OF INCOME OFFERED UNDER THE HEAD INCOME FROM HOUSE PROPERTY AS INCOME FROM OTHER SOURCES. 3. RIVAL CONTENTIONS HAVE BEEN HEARD AND RECORD PERUSED. 4. FACTS IN BRIEF ARE THAT ASSESSEE IS A PARTNERSHIP FIRM. THE PARTNERS OF THE FIRM ARE HOLDING THE PREMISES NOS.4,217,218, VASAN UDHYOG ITA NO. 6869/MUM/2014 M/S. SHAH F E BTEX 2 BHAVAN, TULSI PIPE ROAD, LOWER PAREL, MUMBAI 400 013, AND ALL THE PARTNERS HAVE GIVEN THEIR CONSENT TO ALLOW THE ASSESSEE FIRM TO LEASE OR SUBLEASE THE ABOVE MENTIONED PREMISES TO THIRD PERSONS. DURING THE YEAR AS SESSEE FIRM HAS LET OUT THE PROPERTY AND EARNED RENTAL INCOME THEREFROM. THE RENTAL INCOME WAS OFFERED UNDER THE HEAD INCOME FROM HOUSE PROPERTY. HOWEVER, AO TREATED IT AS INCOME FROM OTHER SOURCES. 5. ACTION OF THE AO WAS AFFIRMED BY THE CIT(A), AGA INST WHICH ASSESSEE IS IN FURTHER APPEAL BEFORE US. 6. WE HAVE CONSIDERED RIVAL CONTENTIONS AND CAREFULLY GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW AND FOUND FROM RECORD THAT ASSESSEE FIRM HAS LET OUT PROPERTY AT A FIXED RENT. EVEN THOUGH THE PARTNE RS OF THE FIRM WERE OWNER S OF THE PROPERTY, THEY HAVE ALLOWED THE FIRM TO LET OUT THE SAME. RENTAL INCOME SO EARNED BY THE FIRM IS CORRECTLY OFFERED UNDER THE HEAD INCOME FROM HOUSE PROPERTY. SINCE THE ASSESSEE FIRM WAS MAINLY ENGAGED IN THE BUSINESS OF MANUFACTURING AND TRADING OF CLOT H WILL NOT DISENTITLE IT FOR GIVING ITS PROPERTY ON RENT. ACCORDINGLY, THE RENTAL INCOME SO RECEIVED BY THE ASSESSEE IS CORRECTLY OFFERED UNDER THE HEAD INCOME FROM HOUSE PROPERTY. ACCORDINGLY, AO IS DIRECTED TO TREAT THE INCOME AS INCOME FROM HOUSE PROPERTY INSTEAD OF INCOME FROM OTHER SOURCES. 7. IN THE RESULT APPEAL OF THE ASSESSEE IS ALLOWED. O RDER PRONOUNCED IN THE OPEN COURT ON THIS 12 / 01 /201 8 S D/ - ( PAWAN SINGH ) S D/ - ( R.C.S HARMA ) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED 12 / 01 /201 8 KARUNA SR. PS ITA NO. 6869/MUM/2014 M/S. SHAH F E BTEX 3 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, MUM BAI 6. GUARD FILE. //TRUE COPY//