Striton Properties Private Limited Vs DCIT (ITAT Mumbai)
ITAT Mumbai held that the receipt from parking facilities is to be treated as business income instead of income from other sources since the same was already accepted as business income in earlier assessment years.
Facts- The assessee has been showing the receipt from parking facilities as business income since 2008 and the same has been accepted as such by the AO. However, during the year under consideration, the AO breached the principle of consistency and treated the income as income from other sources.
Another issue is that for some reason, the new building which was purported to be a hotel building to be constructed by Mars Enterprises, could not be completed. But ground, lower and upper basements have been constructed adjoining to the existing hotel. The commencement certificate issued by the BMC clearly mentioned in its subject that parking layout plan submitted by the assessee is in respect of the proposed hotel building. Therefore, the AO formed a belief that the said three floors of parking were part of the proposed hotel building and since the proposed hotel building was not completed, the claim of depreciation was denied.
Conclusion- Held that following the ratio laid down by the Hon’ble Supreme Court in the case of Radhasoami Satsang v. Commissioner of Income-tax (1992] 193 ITR 321 (SC) and the Hon’ble Jurisdictional High Court (supra), we direct the AO to treat the parking receipts as business income.
