Priya Holdings (P) Ltd., New Delhi V. ITO, New Delhi

MA 593/DEL/2010

• Counselvise Citation: [2011] 123 COUNSELVISE.COM (IT) 6646 (ITAT-DELHI)
• Duration Of Justice: 7 month(s) 29 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 01-07-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Assessment Year: 2001-2002
• Appeal Filed On: 02-11-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S MOHANTY

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH FRIDAY : NEW DELHI) BEFORE SHRI A.D. JAIN, JUDICIAL MEMBER AND SHRI K.D. RANJAN, ACCOUNTANT MEMBER M.A. NO.593/DEL./2010 (IN ITA NO.4308/DEL./2004) (ASSESSMENT YEAR : 2001-02) PRIYA HOLDINGS (P) LTD., VS. ITO WARD 14(4), 1563A, AASHIRWAD, NEW DELHI. RUPANI SARDARNAGAR ROAD, BHAVNAGAR-364001 (PAN/GIR NO.AAACP0974F) (APPLICANT) (RESPONDENT) ASSESSEE BY : SHRI SALIL AGGARWAL, ADV. REVENUE BY : SMT. S. MOHANTY , SR.DR ORDER PER A.D. JAIN: JM VIDE OUR ORDER DATED 24.8.2007, THE ASSESSEES APPEAL W AS ALLOWED FOR STATISTICAL PURPOSES. THE ISSUE OF TAXABILI TY OF RENTAL INCOME FROM PROPERTY LOCATED AT BHAVNAGAR AND LEASED TO M/S PRIYA BLUE INDUSTRIES PVT. LTD., WAS RESTORED TO THE FILE OF THE ASSESSING OFFICER, WITH A DIRECTION FOR THE ASSESSING OFFICER TO RECONSIDER THE CLAIM AS TO WHETHER THE RENTAL INCOME FOR AMENITIES W OULD BE TAXABLE AS INCOME FROM OTHER SOURCES, OR INCOME FROM HOUSE P ROPERTY AND TO THEN ALLOW THE CLAIM FOR DEDUCTION OF EXPENSES, AS PER MISSIBLE UNDER THE LAW. THE RENTAL INCOME OF `7.20 LAKHS FROM LETT ING OUT OF THE BUILDING WAS, HOWEVER, HELD TO BE TAXABLE AS INCOME F ROM BUSINESS. 2. IN THE PRESENT APPLICATION, THE ASSESSEE HAS CONTENDED THAT AN INADVERTENT TYPOGRAPHICAL ERROR HAS CREPT IN, IN OUR ORDER DATED 24.08.2007, INASMUCH AS THE RENTAL INCOME OF `14.40 L AKHS FROM THE PROPERTY FOR PROVIDING FACILITIES/AMENITIES, HAS WRONG LY BEEN DIRECTED TO BE RECONSIDERED AS TO WHETHER THE SAME IS TAXABLE AS INCOME FROM 2 OTHER SOURCES, OR INCOME FROM HOUSE PROPERTY; THAT SUCH INCOME IS ASSESSABLE EITHER UNDER THE HEAD INCOME FROM OTHER SOUR CES, OR INCOME FROM BUSINESS; THAT EVEN THE ASSESSING OFFICER HI MSELF IN ASSESSMENT YEAR 2006-07 HAS ASSESSED THE INCOME FROM OTHER SOURCES. 3. HAVING CONSIDERED THE MATTER, THE GRIEVANCE OF TH E ASSESSEE IS FOUND TO BE CORRECT. THE ASSESSEE HAD SHOWN CLAIMED THE ENTIRE RENTAL INCOME AS INCOME FROM HOUSE PROPERTY. IT HAS CLAIMED DEDUCTION OF THE VARIOUS EXPENSES INCURRED. THE AUTHORITIES BELOW OB SERVED THAT SINCE THE ASSESSEE HAD HIMSELF DECLARED THE ENTIRE RENTAL INCOME AS INCOME FROM HOUSE PROPERTY, IT WAS NOT ENTITLED TO CH ANGE THE HEAD UNDER WHICH THE INCOME WAS DECLARED. HOWEVER, NO F INDING ABOUT THE CLAIM FOR THE ASSESSEE ON MERITS WAS RECORDED. WE, IN OU R ORDER DATED 24.8.2007, OBSERVED, INTER ALIA, THAT THE ENTIRE REN TAL INCOME OF `21.60 LAKHS HAD NOT BEEN RECEIVED FOR LETTING OUT THE BUIL DING ONLY; THAT AS PER THE RENT AGREEMENT, THE ASSESSEE WAS ENTITLED TO REN T OF `7.20 LAKHS PER ANNUM, IN RESPECT OF LAND AND BUILDING, WHI CH HAD IN FACT BEEN RECEIVED BY THE ASSESSEE; THAT THE REST OF THE INCO ME OF `14.40 LAKHS WAS FOR PROVIDING FACILITIES/AMENITIES TO THE TEN ANTS; THAT THIS INCOME WAS NOT CHARGEABLE AS INCOME FROM HOUSE PROPERT Y; THAT THE ASSESSEE HAD NOT MENTIONED AS TO WHETHER THIS INCOME WAS T AXABLE AS INCOME FROM OTHER SOURCES, OR INCOME FROM BUSINESS A ND THE CASE HAD NOT BEEN EXAMINED BY THE AUTHORITIES BELOW FROM THIS ANGLE. 4. THUS, IT IS EVIDENT THAT THE MATTER WAS RESTORED TO THE ASSESSING OFFICER, TO BE DETERMINED AS TO WHETHER THE INCOME F OR PROVIDING FACILITIES/AMENITIES WAS TAXABLE AS INCOME FROM OTHER SOURCES, OR AS INCOME FROM BUSINESS. OBVIOUSLY, MENTION OF INCOME FROM HOUSE PROPERTY AT THE BEGINNING OF THE 13 TH LINE OF THE RUNNING PARA AT PAGE 12 OF OUR ORDER IS A TYPOGRAPHICAL ERROR. IN VIEW O F THE DISCUSSION, 3 PRECEDING THIS PHRASE, I.E., IN PARA 7 AT PAGES 9-11 O F OUR ORDER. AS SUCH, WE FIND THAT INDEED, THERE IS A MISTAKE APPARENT FROM RECORD IN OUR ORDER DATED 24.8.2007, AS NOTED HEREINABOVE. 5. ACCORDINGLY, THE GRIEVANCE OF THE ASSESSEE IS JUSTIFIE D AND IS ACCEPTED. THE PHRASE INCOME FROM HOUSE PROPERTY, A S OCCURRING AT THE BEGINNING OF THE 13 TH LINE OF THE RUNNING PARA (PARA 7) AT PAGE 12 OF OUR ORDER DATED 24.8.2007 IS ORDERED TO BE SUBSTITUTED BY THE PHRASE INCOME FROM BUSINESS. 6. IN THE RESULT, THE MISCELLANEOUS APPLICATION IS ALLO WED. ORDER PRONOUNCED IN OPEN COURT ON 01.07.2011. SD/- SD/- (K.D. RANJAN) (A.D. JAIN) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 01.07.2011 SKB COPY FORWARDED TO: 1. APPLICANT 2. RESPONDENT 3. CIT 4. CIT(A)-XVII, NEW DELHI. 5. DR DEPUTY REGISTRAR