Case Law Details
DCIT Vs N. V. Developers Pvt. Ltd. (ITAT Mumbai)
It is an undisputed fact that the assessee is operating and maintaining IT Park- G-Corp Tech Park. The issue in present appeal is in narrow encompass i.e. Whether the income from operating and maintaining of IT Park is to be assessed under the head ‘Income from House Property’ or under the head ‘Income from Business’. It is an unrebutted fact that in the preceding Assessment Year i.e. Assessment Year 2011-12 and in immediate succeeding Assessment Year i.e. Assessment Year 2013-14, the CIT(A) has held the income from operating and maintaining the same IT Park as income assessable under the head ‘Business Income’. No material has been placed on record to show that any appeal was filed by the Revenue against the order of CIT(A) for Assessment Year 2011-12 or Assessment Year 2013-14. Thus, the Revenue has accepted the same. Following the principle of consistency, appeal of the Revenue is liable to be dismissed.
Be that as it may, the CBDT vide Circular No.16/2017 in the light of decision rendered in the case of CIT vs. Velankani Information Systems Ltd. reported as 218 Taxman 88 (Kar) and CIT vs. Information Technology Park Ltd. reported as 47 taxmann.com 239 (Kar) has clarified that in the case of an undertaking which develops and operates, or maintain and operate an industrial park/SEZ notified in accordance with scheme framed and notified by the Government, the income from letting out of the premises/developing space along with other facilities in an industrial park, SEZ is to be charged to tax under the head ‘profits and gains of business’. The Hon’ble Jurisdictional High Court in the case of CIT vs. Magarpatta Township & Development Construction Co. Ltd. (supra), after considering the aforesaid circular has reiterated this position. We find no merit in the appeal of Revenue, hence, dismissed.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
This appeal by the Revenue is directed against the order of Commissioner of Income Tax (Appeals)-2, Mumbai ( in short ‘the CIT(A) ’) dated 25/07/2019 for the assessment year 2012-13.
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