DCIT, Bangalore V. M/s Uday JVG Reality P. Limited, Bangalore

ITA 745/BANG/2011

• Counselvise Citation: 74521114 RSA 2011
• Duration Of Justice: 1 year(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-08-2012
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 22-08-2012
• Assessment Year: 2007-2008
• Appeal Filed On: 03-08-2011
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: B SARAVANAN
• Assessee Lawyers: V SRINIVASAN
• Keywords: Business income
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH A BEFORE SHRI N.V. VASUDEVAN, JUDICIAL MEMBER AND SHRI JASON P. BOAZ, ACCOUNTANT MEMBER I.T.A. NO.744 & 745/BANG/2011 (ASSESSMENT YEARS : 2006-07 & 2007-08) DY. COMMISSIONER OF INCOME TAX, CIRCLE 12(5), NRUPATHUNGA ROAD, BANGALORE. . APPELLANT. VS. M/S. UDAY JVG REALITY P. LTD., 1 ST FLOOR, EMBASSY POINT NO.150, INFANTRY ROAD, BANGALORE-560 001. .. R ESPONDENT. PAN AAACU7646M APPELLANT BY : SHRI B. SARAVANAN. RESPONDENT BY : SHRI V. SRINIVASAN. DATE OF HEARING : 22.08.2012. DATE OF PRONOUNCEMENT : 24.8.2012. O R D E R PER SHRI JASON P. BOAZ : THESE APPEALS ARE DIRECTED BY REVENUE AGAINST THE ORDERS OF THE COMMISSIONER OF INCOME TAX (APPEALS)-III, BANGALORE BOTH DATED 28. 4.2011 FOR ASSESSMENT YEARS 2006- 07 & 2007-08. THESE TWO APPEALS ARE BEING AND DISPO SED OFF BY WAY OF A COMMON ORDER FOR THE SAKE OF CONVENIENCE. 2.1 AT THE TIME OF HEARING, THE LEARNED COUNSEL FO R THE ASSESSEE FILED TWO LETTERS DT.20.8.2012 ADDRESSED TO THIS BENCH SIGNED BY THE AUTHORIZED SIGNATORY OF THE ASSESSEE COMPANY ONE EACH FOR ASSESSMENT YEAR 2006-07 AND 20 07-08. IN THESE LETTERS, IT IS STATED THAT THE ISSUE INVOLVED IN THESE APPEALS OF REVENUE RELATE TO THE ASSESSMENT OF RENTAL INCOME REPORTED BY IT UNDER THE HEAD INCOME FROM HOUSE PROPERTY AS AGAINST THE HEAD BUSINESS INCOME RETURNED/DECLARED BY IT. IT IS FURTHER STATED THEREIN THAT DESPITE 2 ITA NOS.744 & 745/BANG/11 THE FACT THAT THE LEARNED CIT(A) HAD ALLOWED THE AS SESSEES APPEAL RESTORING THE ASSESSEES ORIGINALLY DECLARED RENTAL INCOME AS BU SINESS INCOME, WHICH HAS RESULTED IN REVENUE FILING THESE TWO APPEALS, THE ASSESSEE NOW CONCEDES TO THE CLAIM OF THE DEPARTMENT THAT IN ACCORDANCE WITH THE ORDERS OF AS SESSMENT FRAMED BY THE ASSESSING OFFICER THE RENTAL INCOME BE ASSESSED AS INCOME FR OM HOUSE PROPERTY AND NOT AS BUSINESS INCOME. 2.2 FOR THE SAKE OF CLARITY, WE EXTRACT AND REPRODUCE HEREUNDER THE ENTIRE TEXT OF THE LETTER FOR ASSESSMENT YEAR 2006-07 WHICH IS IDE NTICAL TO THE ONE FILED FOR ASSESSMENT YEAR 2007-08 : FROM : M/S. UDAY JVG REALITY PVT. LTD. 1 ST FLOOR, EMBASSY POINT, #150, INFANTRY ROAD, BANGALO RE-560 001 TO THE HON'BLE MEMBERS, INCOME TAX APPELLATE TRIBUNAL, A BENCH, BANGALO RE. HON'BLE SIR, REG : OUR OWN PAN AAACU 7646M ASSESSMENT YEAR 2 006-07 DISPOSAL OF DEPARTMENTAL APPEAL REQUEST OF. REF : ITA NO.744/BANG/2011. ------- THE ABOVE REFERRED DEPARTMENT APPEAL IS POSTED FOR HEARING BEFORE THE HON'BLE BENCH ON 22.8.2012 AND IN THIS CONNECTION, WE BEG TO SUBMIT THE FOLLOWING FOR YOUR HONOURS KIND CONSIDERATION AND G RACIOUS ORDERS OF DISPOSAL OF THE ABOVE REFERRED APPEAL AS UNDER : 1. BEING AGGRIEVED BY THE ORDER OF ASSESSMENT OF THE LD. ASSESSING OFFICER FOR THE AFORESAID ASSESSMENT YEAR WE HAD INSTITUTED AN APPEAL BEFORE THE LEARNED CIT(A)-III, BANGALORE. THE LEARNED CIT(A)- III, VIDE HIS ORDER IN ITA NO.141/C-12(5)/CIT(A)III/08-09 DATED 28.4.2011 ALLOWED THE APPEAL IN OUR FAVOUR. 2. THE ISSUE INVOLVED IN THE APPEAL RELATES TO ASSESSM ENT OF RENTAL INCOME REPORTED BY US UNDER THE HEAD INCOME FROM HOUSE PR OPERTY AS AGAINST THE HEAD BUSINESS RETURNED BY US. ON APPEAL, THE LEA RNED CIT(A) ALLOWED THE APPEAL AND THE DEPARTMENT BEING AGGRIEVED BY THE AF ORESAID ORDER OF THE CIT(A)-III, BANGALORE, AS AFORESAID, HAS INSTITUTED AN APPEAL BEFORE THE HON'BLE ITAT IN THE ITA NUMBER REFERRED TO ABOVE, W HICH IS POSTED FOR HEARING ON 22.8.2012. 3. WE HEREBY CONCEDE TO THE DEPARTMENT IN ASSESSMENT T HAT THE INCOME HAS TO BE ASSESSED UNDER THE HEAD HOUSE PROPERTY AS AGAI NST THE INCOME 3 ITA NOS.744 & 745/BANG/11 REPORTED BY US UNDER THE HEAD BUSINESS IN VIEW OF THE FACT THAT THERE WOULD BE NO TAX IMPACT IN THE LONG RUN. 4. IN VIEW OF THE ABOVE, WE REQUEST YOUR HONOUR TO KI NDLY DISPOSE OFF THE APPEAL OF THE DEPARTMENT ACCORDINGLY. THANKING ;YOU, WE BEG TO REMAIN, YOURS FAITHFULLY, FOR UDAY JVG REALTY PVT. LTD. SD/- AUTHORISED SIGNATORY. 2.3 THE LEARNED DEPARTMENTAL REPRESENTATIVE AGR EED THAT IN VIEW OF THE ASSESSEES LETTER DT.20.8.12 (SUPRA), THE APPEALS OF REVENUE F OR ASSESSMENT YEARS 2006-07 AND 2007-08 BE ALLOWED BY REVERSING THE ORDERS OF THE L EARNED CIT(A) FOR THESE TWO YEARS AND RESTORING THE ORDERS OF ASSESSMENT BOTH PASSED UNDER SECTION 143(3) OF THE ACT FOR ASSESSMENT YEAR 2006-07 DT.30.12.2008 AND FOR ASSES SMENT YEAR 2007-08 DT.5.8.2009. 2.4 IN VIEW OF THE FACTS AND CIRCUMSTANCES OF T HE CASE AS DISCUSSED ABOVE AND IN THE LIGHT OF THE ASSESSEES TWO LETTERS DT.20.8.2012 (S UPRA), WE HEREBY REVERSE BOTH THE ORDERS OF THE LEARNED CIT(A) DT.28.4.2011 FOR ASSE SSMENT YEARS 2006-07 AND 2007-08 AND RESTORE THE ORDERS OF THE ASSESSING OFFICER PAS SED UNDER SECTION 143(3) OF THE ACT ON 30.12.2008 AND 5.8.2009 RESPECTIVELY. 3. IN THE RESULT, THE APPEALS OF REVENUE FOR ASSESS MENT YEARS 2006-07 AND 2007-08 ARE ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 24 TH AUGUST, 2012. SD/- SD/- (N.V. VASUDEVAN) (JASON P BOAZ) JUDICIAL MEMBER ACCOUNTANT MEMB ER BANGALORE, DATED: 24.08.2012. *REDDY GP 4 ITA NOS.744 & 745/BANG/11 COPY TO : 1. APPELLANT 2. RESPONDENT 3. C.I.T. 4. CIT(A) 5. DR, - B BENCH. 6. GUARD FILE. (TRUE COPY ) BY ORDE R SR. PRIVATE SECRETARY, ITAT, BANGALORE