Case Law Details
Tulsi Shipping (P.) Ltd. Vs. ITO (ITAT Mumbai)
Hon’ble Madras High Court in the case of CIT v. NDR Warehousing (P.) Ltd. [2015] 372 ITR 690 , which has been relied upon by the appellant before us and which is directly on the point. As per the Hon’ble Madras High Court, the income earned from letting-out of warehouse and go down was chargeable under the head ‘income from business’ having regard to the facts and circumstances of the case. In the case before the Hon’ble High Court, assessee was engaged in the business of warehousing, handling and transport business and it was providing storage facility to manufacturers, traders and other concerns engaged in warehousing activity and the services provided included several auxiliary services such as pest control, preventive measures against decay of goods stored due to vagaries of moisture/temperature, fungus formation, etc., besides security and protection of goods stored. In this context, the decision of the Mumbai bench of the Tribunal in the case of Vora Warehousing (P.) Ltd. v. Asst. CIT [1999] 70 ITD 518 is also relevant where it has been observed that the warehouses constructed with facility to store goods are to be considered as ‘commercial assets’ and income realized by letting-out such facility was asses sable as ‘business income’. Considered in the aforesaid light, in our view, in the present case, the Assessing Officer was not justified in considering the income from godown rent as ‘income from house property’.
FULL TEXT OF THE ITAT ORDER IS AS FOLLOWS:-
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