Case Law Details
DCIT Vs ATC Realtors Pvt. Ltd. (ITAT Guwahati)
Assessee company developed shopping malls and business centers on properties owned by it and let out same by providing host of facilities in said business centre, income derived there from was business income, as held by the Coordinate Bench of ITAT Mumbai in the case of A.C.I.T. – VS- STELLER DEVELOPER (P.) LTD. (2015) 68 SOT 34 (MUM)]. Again, where the assessee’s main objects were acquiring, constructing, operating and maintaining of multiplexes, business centres, etc., income derived from such activities is to be treated as business income and not income from house property as held by the Coordinate Bench of ITAT Mumbai in the case of SHREEJI EXHIBITORS -VS- A.C.I.T. (2015) 42 ITR (TRIB.) 596 (MUM)]. Therefore, it is settled law that the income earned by the assessee from letting out various shops/stalls in shopping malls constructed by them is to be treated as business income and not as income from house property. That being so, we decline to interfere with the order of Id. C.I T.(A) in deleting the aforesaid additions. His order on this addition is, therefore upheld and the grounds of appeal of the Revenue are dismissed.
FULL TEXT OF THE ITAT JUDGEMENT
The caption two appeals filed by the Revenue, pertaining to assessment years 2012-13 and 2013-14 are directed against the separate orders passed by the Commissioner of Income Tax(Appeals)-2 [in short CIT(A)-2], Guwahati, which in turn arise out of separate assessment orders passed by the assessing officer (AO) under section 143 (3) of the Income Tax, Act 1961 (hereinafter referred to „the Act’).
2. Since, these two appeals filed by the Revenue relate to the same assessee, identical and common issues are involved, therefore these have been clubbed and heard together and a consolidated order is being passed for the same of convenience and brevity. The Revenue’s appeal in ITA No. 169/Gau/2018, for AY 2012-13, is taken as the lead case.
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