APEX PROPERTIES P. LTD, MUMBAI V. ITO 6(1)(3), MUMBAI

ITA 6893/MUM/2011

• Counselvise Citation: [2012] 119 COUNSELVISE.COM (IT) 9306 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 2 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-12-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 05-12-2012
• Assessment Year: 2006-2007
• Appeal Filed On: 11-10-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: MAYUR KISHADWALA
• Keywords: Business income

Judgement Text

. , IN THE INCOME TAX APPELLATE TRIBUNAL SMC , BENCH MUMBAI , BEFORE SHRI R.K.GUPTA , J M ITA NO. 6893 / MUM/ 20 1 1 ( ASSESSMENT YEAR : 200 6 - 20 0 7 ) M/S APEX PROPERTIES P. LTD., 121/127, KAZI SYED STREET, MASJID BUNDER, MUMBAI - 02 VS. ITO 6 ( 1 )(3) , MUMBAI PAN/GIR NO. : A AA CA 3867 C ( APPELLANT ) .. ( RESPONDENT ) /A SSESS EE BY : MR. MAYUR KISHADWALA /RE VENUE BY : MR. MOHIT JAIN DATE OF HEARING : 6 TH DEC ., 2012 DATE OF PRONOUNCEMENT : 12 TH DEC. ,2012 O R D E R THIS IS AN APPEAL PREFER RED BY THE ASSESSEE AGAINST THE ORDER DATED 6 - 6 - 2011 OF LEANED CIT(A), MUMBAI RELA TING TO THE ASSESSMENT YEAR 200 6 - 0 7 . 2 . THE ONLY ISSUE IN THE APPEAL OF THE ASSESSEE IS AGAINST ASSESSING THE WAREHOUSING INCOME AS INCOME FROM HOUSE PROPERTY AGAINST BUSINE SS INCOME SHOWN BY THE ASSESSEE. 3 . DURING THE ASSESSMENT, THE ASSESSING OFFICER NOTED THAT THE ASSESSEE HAS RECEIVED WAREHOUS ING CHARGES AT RS. 5,84,270/ - . THE ASSESSEE WAS REQUIRED AS TO WHY THE WAREHOUSING CHARGES RECEIVED BY ITA NO. 6893 /20 1 1 2 THE ASSESSEE SHOULD NOT BE TREATED AS INCOME FROM HOUSE PROPERTY. DETAIL SUBMISSIONS WERE FILED THAT THE ASSESSEE IS NOT THE OWNER OF THE LAND AS HE HAS TAKEN THE BUILDING ON RENT AND USING FOR WAREHOUSING BUSINESS BY GIVING TO THE VARIOUS PERSONS FROM TIME TO TIME. HOWEVER, THE ASS ESSING OFFICER WAS NOT SATISFIED WITH THE CONTENTION OF THE ASSESSEE. ACCORDINGLY, HE TREATED THE WAREHOUSING CHARGES AS INCOME FROM HOUSE PROPERTY. LEARNED CIT(A) ALSO CONFIRMED THE ACTION OF THE ASSESSING OFFICER. 4 . AFTER CONSIDERING THE SUBMISSION S A ND PERUSING THE MATERIAL ON RECORD, I FOUND THAT THE ASSESSEE DESERVES TO SUCCEED IN ITS APPEAL. IT IS SEEN THAT THE PROPERTY IS BEING USED FOR LAST SO MANY YEARS FOR THE PURPOSE OF RENTING TO VARIOUS PERSONS FOR USING AS WAREHOUSING. THE ASSESSEE IS NOT O WNER OF THE BUILDING AS HE HAS TAKEN THE BUILDING ON RENT. THE ASSESSEE HAS NOT GIVEN THE PROPERTY TO ONE CUSTOMER ONLY AS THE ASSESSEE HAS GIVEN THE BUILDING TO VARIOUS PERSONS FROM TIME TO TIME FOR STORING THEIR GOODS IN THE WAREHOUSE. IT IS FURTHER SEEN THAT IN PAST FOR SO MANY YEARS AND IN SUBSEQUENT YEARS, THE INCOME FROM WAREHOUSING HAS BEEN ASSESSEE D AS BUSINESS INCOME. THEREFORE, IN VIEW OF THE CONSISTENCY AND IN VIEW OF THE ABOVE FACTS AND CIRCUMSTANCES OF THE CASE, I HOLD THAT THE CHARGES ON ACCOUN T OF WAREHOUSING IS ASSESSABLE AS BUSINESS INCOME AS ASSESSED IN EARLIER YEAR AS WELL AS IN SUBSEQUENT YEAR BY THE DEPARTMENT ITSELF. I ORDER ACCORDINGLY. ITA NO. 6893 /20 1 1 3 5 . IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED . ORDER PRONOUNCED IN THE OPEN COURT ON THIS 12 TH DAY OF DEC. 2012. 2012 SD/ - ( ) ( R.K.GUPTA ) / JUDICIAL MEMBER MUMBAI ; DATED : 1 2 /12 / 2012 . /PKM , PS COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / THE CIT(A) - X, MUMBAI. 4. / CIT 5. / DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY// / BY ORDER, ( DY./ASSTT. REGISTRAR) / ITAT, MUMBAI