MICROSOFT INDIA (R&D) PRIVATE LIMITED,NEW DELHI vs. DCIT, CIRCLE-16(1), NEW DELHI

ITA 1640/DEL/2022Status: DisposedITAT Delhi28 March 2024AY 2018-19Bench: SHRI N.K. BILLAIYA (Accountant Member), MS ASTHA CHANDRA (Judicial Member)12 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that the composite rental income should be treated as 'Income from Other Sources', following its own consistent decisions in the assessee's own cases for earlier assessment years. Other grounds related to adjustments from intimation u/s 143(1) were dismissed, and penalty proceedings were deemed premature.

What were the facts?

The assessee, Microsoft India (R&D) Pvt. Ltd., appealed against assessment orders for AY 2017-18 and 2018-19. A key issue was whether composite rental income should be taxed as 'Income from House Property' or 'Income from Other Sources'. The assessee argued for the latter, citing previous ITAT decisions in its own case.

What were the issues?

Whether composite rental income is taxable under 'Income from House Property' or 'Income from Other Sources', and the validity of adjustments made during assessment proceedings.

Which sections of the Income-tax Act were involved?

Section 56,Section 57,Section 143(3),Section 144C(13),Section 144B,Section 40(a)(iib),Section 36(1)(va),Section 43B,Section 270A,Section 274

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH: ‘I’: NEW DELHI

Before: SHRI N.K. BILLAIYA & MS ASTHA CHANDRA

For Appellant: Shri Nageswar Rao & Parth, Adv
For Respondent: Shri Rajesh Kumar, CIT(DR)
Hearing: 27.03.2024Pronounced: 28.03.2024

PER N.K. BILLAIYA, AM

ITA Nos.-1483/Del/2022 and 1640/Del/2022 are two separate

appeals by the Assessee preferred against two separate orders dated

26.04.

2022 and 27.05.2022 framed u/s 143(3) read with Section 144C(13)

of the Act. Since common issues are involved, both these appeals were ITA nos.- 1483 & 1640/Del/2022 Microsoft India (R&D) Pvt. Ltd. heard together and are disposed of by this common order for the sake of convenience and brevity.

ITA No.- 1483/Del/2022 for A.Y. 2017-18

2.

The grievances of the assessee read as under:

“1. Draft assessment order passed by t

The order continues below.

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