Case Law Details
Select Infrastructure Pvt. Ltd Vs. Addl. CIT (ITAT Delhi)
Here in this case, qua the retail space, the assessee was not carrying on any systematic or organized activity of providing service to the occupiers of the shops, albeit other service charges pertaining to the common maintenance, event and advertising, parking fees, etc., has been offered separately for tax under the head profits and gains of business of profession. So far as retail space is concerned, it is lease rent simplicitor, which is evident from the copy of sample lease deed which has been placed by the assessee in its paper book from pages 157 to 187 and also the copies of MoU, the copy of which are appearing at pages 149 to 156 of the paper book. Thus, on the facts of the present case and also relying upon the principle laid down by the latest Supreme Court judgment in the case of Raj Dadarkar & Associates vs. ACIT (supra), we hold that the receipts from the lease rent/ license fee from lease of retail space in the shopping mall is to be taxed under the head “income from house property”under section 22; and consequently, the assessee is liable for deduction under section 24(a) and other deductions of interest of pre- construction period and interest on loan which are to be allowed while computing the income from house property. Accordingly, dis allowance made by the Assessing Officer for the sums aggregating to Rs. 18,19,71,202/- is directed to be deleted.
Full Text of the ITAT Order is as follows:-
The cross-appeals for assessment year 2008-09 have been filed by the assessee as well as by the Revenue against the impugned order dated 28/3/2013, passed by the Ld. CIT(Appeals)-XI, New Delhi for the quantum of assessment passed under section 143(3) of the Act; appeal for assessment year 2009-10 has been filed by the assessee against the impugned order dated 28/3/1013; appeal for assessment year 2010-11 has been filed by the assessee against the impugned order dated 31/7/2014; cross-appeals for the assessment year 2011-12 have been filed by the assessee as well as by the Revenue against the impugned order dated 31/7/2014.
2. Since the issues involved in all the appeals are common arising out of identical set of facts, therefore, same were heard together and are being disposed of by way of this consolidated order.
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