The Saturday Club Limited, Kolkata V. DCIT, Circle - 8(2), Kolkata

MA 219/KOL/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 5608 (ITAT-KOLKATA)
• Duration Of Justice: 5 month(s) 17 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 17-05-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2011-2012
• Appeal Filed On: 30-11-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

1 MA. NO. 219/KOL/18 THE SATURDAY CLUB LTD. IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH , KOLKATA [BEFORE SHRI S.S. GODARA , J M & DR. SHRI A.L.SAINI, AM ] M .A NO . 219 /KOL/2018 ( A/O ITA NO. 2 377 /KOL/201 6 A.Y 20 11 - 12 ) THE SATURDAY CLUB LTD PAN: AABCT 1662R VS. D.C.I.T, CIRCLE - 8(2), KOLKATA APP LICANT RESPONDENT DATE OF HEARING 0 1 - 03 - 201 9 DATE OF PRONOUNCEMENT 17 - 05 - 2019 FOR THE APP LICANT/ ASSESSEE SHRI D.S.DAMLE, FCA, LD.AR FOR THE RESPONDENT /REVENUE SHRI SANKAR HALDER, JCIT, LD. SR.DR ORDER SHRI S.S. GODARA, JM : THIS A SSESSESSEES MISCELLANEOUS APPLICATION FILED U/S 254(2) OF THE INCOME TAX ACT , 1961 ( IN SHORT ACT) SEEKS TO MODIFY/RECALL OUR ORDER DATED 09 - 05 - 2018 DISMISSING THE MAIN APPEAL , T HEREBY UPHOLDING BOTH THE LOWER AUTHORITIES ACTION TREATING ITS RENTAL INCOME AS INCOME FORM OTHER SOURCES. HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. IT EMERGES DURING THE COURSE OF HEARING THAT THE ASSESSEE HAD DERIVED RENTAL INCOME AMOUNTING TO RS.57,98,259/ - FROM ITS CORPORATE MEMBER M/S. RELIANCE INDUSTRIES LIMITED. IT PLEADED BEFORE THE ASSESSING OFFICER THAT THE SAME WAS NO T TAXABLE AS INCOME IN VIEW OF MUTUALITY PRINCIPLE SINCE RECEIVED FROM ITS CORPORATE MEMBER. THE ASSESSING OFFICERS ASSESSMENT ORDER DATED 0 1 - 03 - 2014 REJECTED ASSES S EES EXPLANATION TO ASSESS A BOVE RENTAL INCOME AS INCOME FROM OTHER SOURCES AS UPHELD IN CIT(A)S ORDER A S WELL AS IN OUR ORDER IN ISSUE DT. 09 - 05 - 2018 . 3. THE A SSESSEES ONLY GRIEVANCE IS THAT ITS MAIN APPEAL HAS BEEN TAKEN UP FOR HEARING ALONG WITH REVENUES APPEAL ITA NO. 837/K OL/2015 FOR THE PRECEDING ASSESSMENT YEAR 2010 - 11 WHEREIN THE CIT(A) HAD ACCEPTED ASSESSEES MUTUALITY P LEA IN VIEW OF TRIBUNALS ORDER IN THIS TAXPAYERS CASE ITSELF FOR THE ASSESSMENT YEAR 2007 - 08 . CASE FILE SUGGESTS THAT OUR ORDER DT. 09 - 05 - 201 8 IN ISSUE ACCEPTED THE REVENUES GRIEVANCE IN ITS ABOVE 2 MA. NO. 219/KOL/18 THE SATURDAY CLUB LTD. STATED FORM ER APPEAL BY FOLLOWING TRIBUNALS ORDER IN ASSESSEES CASE ITSELF IN A/Y 2008 - 09 HOLDING THAT THE SAID RENTAL INCOME FROM THE VERY PAYER HAD TO BE ASSESSED AS INCOME FROM HOUSE PROPERTY. WE THEREFORE DIRECT ED THE ASSESSING OFFICER IN ASSESSMENT YEAR 2010 - 11 TO ASSESS ASSESSEES SIMILAR RENTAL INCOME AS INCOME FROM HOUSE PROPERTY BUT CONFIRM ED BOTH THE LOWER AUTHORITIES ACTION TREATING ASSESSEES RENTAL INCOME AS INCOME FROM OTHER SO URCES IN THE IMPUGNED ASSESSMENT YEAR . ALL THESE PECULIAR FACTS AND CIRCUMSTANCES MAKE IT CLEAR THAT OUR ORDER IN ISSUE DT. 09 - 05 - 2018 SUFFERS FROM AN APPARENT MISTAKE AS THE ASSESSEES RENTAL INCOME STANDS ASSESSED AS INCOME FROM OTHER SOURCES THAN INCOME FROM HOUSE PROPERTY. WE ACCORDINGLY REJECT THE REVENUES ARGUMENTS IN SUPPORT OF OUR ORDER AND DIRECT THE ASSESSING OFFICER TO ASSESS THE ASSESSEES RENTAL INCOME UNDER THE HEAD INCOME FROM HOUSE PROPERTY IN VIEW OF CORRESPONDING PROVISION S IN THE ACT AS PER LAW . THE MAIN APPEAL ITA NO. 2377/KOL/2016 IS ORDER ED AS ALLOWED FOR STATISTICAL PURPOSES . 4 . THIS ASSESSEES MISC. APPLICATION IS ACCEPTED IN ABOVE TERMS. ORDER PRONOUNCED IN THE OPEN COURT ON 17 - 05 - 2019 S D/ - SD/ - A.L.SAINI S.S.GODARA ACCOUNTANT MEMBER JUDIC IAL MEMBER DATED 17 - 05 - 2019 * PP(SR.P.S.) COPY OF THE ORDER FORWARDED TO: 1. APP LICANT / ASSESSEE: THE SATURDAY CLUB LIMITED 7 WOOD STREET, KOLKATA - 16. 2 RESPONDENT/ REVENUE: D.C.I.T, CIRCLE - 8(2), KOLKA TA , AAYKAR BHAWAN, KOLKATA - 69. 3. CIT, 4. CIT(A), KOLKATA 5. DR, KOLKATA BENCHES, KOLKATA **PP/SPS TRUE COPY BY BY ORDER ASSISTANT REGISTRAR ITAT KOLKATA