GALA FOODS P.LTD, MUMBAI V. ITO 7(1)(1),

ITA 7194/MUM/2016

• Counselvise Citation: [2017] 126 COUNSELVISE.COM (IT) 8064 (ITAT-MUMBAI)
• Duration Of Justice: 11 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-12-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Appeal Filed On: 07-12-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S K MITRA
• Assessee Lawyers: G C LALKA
• Keywords: Depreciation

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC , BENCH MUMBAI BEFORE SHRI R.C.SHARMA, AM ITA NO. 7194 / MUM/20 1 6 ( ASSESSMENT YEAR : 2012 - 13 ) M/S. GALA FOODS PVT. LTD., 12, SHIVAJI FORT CHS LTD., N.S. MANKIKAR MARG SION (E), MUMBAI 400 022 VS. ITO 7 (1)(1) , MUMBAI PAN/GIR NO. AAACG3668D APPELLANT ) .. RESPONDENT ) ASSESSEE BY SHRI G.C. LALKA REVENUE BY SHRI S.K. MITRA DATE OF HEARING 07 / 09 /201 7 DATE OF PRONOUNCEME NT 04 / 12 / 201 7 / 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) - 13, MUMBAI DATED 27/09/2016 FOR THE A.Y.2012 - 13 IN THE MATTER OF ORDER PASSED U/S.143(3) OF THE IT ACT. 2. GRIEVANCE OF ASSESSEE RELATES TO TREAT MENT OF INCOME FROM WAREHOUSE AS INCOME FROM HOUSE PROPERTY IN PLACE OF INCOME OFFERED UNDER THE HEAD BUSINESS AND PROFESSION. 3. RIVAL CONTENTIONS HAVE BEEN HEARD AND RECORD PERUSED. 4. FACTS IN BRIEF ARE THAT THE ASSESSEE COMPANY OWNS A WAREHOUSE AT TH E MIDC TTC INDUSTRIAL AREA, RABALE, NAVI MUMBAI. THE ASSESSEE HAD RECEIVED WAREHOUSING CHARGES TO THE TUNE OF RS.47.99 LAKHS FROM ONE M/S. OM WATERHOUSING. THE ASSESSEE OFFERED WAREHOUSING CHARGES AS ITA NO. 7194/MUM/2016 M/S. GALA FOODS PVT LTD., 2 INCOME FROM BUSINESS, HOWEVER AO TREATED THE SAME AS INC OME FROM HOUSE PROPERTY AND DISALLOWED ASSESSEES CLAIM OF DEPRECIATION. I FOUND THAT ASSESSEE ACTIVITIES OF GIVING WAREHOUSING FACILITY ARE COMPLEX COMMERCIAL ACTIVITIES. ACCORDINGLY, COMMERCIAL EXPLOITATION OF PROPERTY BY WAY OF COMPLEX COMMERCIAL ACTIVI TIES LEADS TO INCOME FROM BUSINESS AND NOT TO INCOME FROM HOUSE PROPERTY. AS THE INCOME IS LIABLE TO BE ASSESSED AS INCOME FROM BUSINESS, ASSESSEES CLAIM OF DEPRECIATION IS LIABLE TO BE ALLOWED AGAINST SUCH INCOME. I DIRECT ACCORDINGLY. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED. O RDER PRONOUNCED IN THE OPEN COURT ON THIS 04 / 12 /2017 S D/ - ( R.C.SHARMA ) ACCOUNTANT MEMBER MUMBAI ; DATED 04 / 12 /201 7 KARUNA SR. PS COPY OF THE ORDER F ORWARDED 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//