TULSIDAS V. PATEL PVT LTD,MUMBAI vs. DY. COMMISSIONER OF INCOME TAX 5(3)(2), MUMBAI

ITA 556/MUM/2023Status: DisposedITAT Mumbai11 August 2023AY 2012-201318 pages
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What did the Tribunal hold?

The Tribunal held that the leave and license fees were assessable under the head 'Profits & Gains of Business' because the company's objects included leasing and providing services, and the administrator was operating within these parameters. The Tribunal distinguished the case from precedents where renting was ancillary.

What were the facts?

The appellant company, managed by a court-appointed administrator, received leave and license fees from flats held as stock-in-trade. The Assessing Officer treated this income as 'Income from House Property' instead of 'Profits & Gains of Business'.

What were the issues?

Whether income from licensing of flats held as stock-in-trade, managed by an administrator, should be taxed as 'Income from House Property' or 'Profits & Gains of Business'.

Which sections of the Income-tax Act were involved?

Section 143(3)(ii),Section 234B

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Income Tax Appellate Tribunal, E BENCH, MUMBAI

Per Rahul Chaudhary, Judicial Member:

By way of the present appeal the Appellant has challenged the order, 1. dated 30/11/2016, passed by the Ld. Commissioner of Income Tax (Appeals)-21, Mumbai [hereinafter referred to as „the CIT(A)‟] for the Assessment Year 2012-13, whereby the Ld. CIT(A) had dismissed the appeal of the Appellant against the Assessment Order, dated 23/03/2015, passed under Section 143(3)(ii) of the Income Tax Act, 1961 (hereinafter referred to as „the Act‟).

The Appellant has raised following grounds of appeal: 2. “1. Ground No. 1 : Denial of the claim of Appellant to compute income under the head "Profits & Gains of Bus

The order continues below.

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