ASHA BUSINESS CENTRE PRIVATE LIMITED,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE - 11(1), BANGALORE

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ITA 963/BANG/2019Status: DisposedITAT Bangalore30 September 2021AY 2012-131 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the CIT(A) should have issued a notice to the assessee before treating the income as business income. The issue was remitted back to the CIT(A) for fresh consideration.

What were the facts?

The assessee earned income from letting out a commercial complex (bare shell) and hire charges from furniture and fixtures. The CIT(A) treated this income as business income without issuing a notice to the assessee.

What were the issues?

Whether the CIT(A) erred by treating rental income as business income without issuing a proper notice to the assessee?

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

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Ld.CIT(A). Though the first Appellate Authority has coterminous powers with that of the Ld.AO, there is nothing on record to establish that the Ld.CIT(A) issued notice to assessee before treating the income earned from letting out of commercial complex (bare shell) as business income. 4.4 In our view, the treatment of income earned by the assessee from hire charges from letting out of furniture fixtures and commercial complex (bare shell) needs to be considered in accordance with law. In the interest of justice we remit the issue back to the Ld.CIT(A) to consider it afresh in accordance with the principles laid down by Hon’ble Supreme Court in case of Chennai Properties and Investments Ltd. vs CIT reported in (2015) 373 ITR 673. Accordingly grounds raised by assessee stands allowed for statistical purposes. In the result appeals filed by assessee stands allowed for statistical purposes. Order pronounced in the open court on 30th Sept, 2021 Sd/- Sd/- (CHANDRA POOJARI) (BEENA PILLAI) Accountant Member Judicial Member Bangalore, Dated, the 30th Sept, 2021. /Vms/

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