GALA FOODS P.LTD,MUMBAI vs. ITO 7(1)(1),

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ITA 7194/MUM/2016Status: DisposedITAT Mumbai04 December 2017AY 2012-132 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the assessee's activities of providing warehousing facilities are complex commercial activities. Therefore, the income derived from such commercial exploitation of property should be treated as business income, not income from house property.

What were the facts?

The assessee company offered warehousing charges as income from business. The AO treated this income as income from house property and disallowed depreciation.

What were the issues?

Whether income from warehousing charges should be treated as business income or income from house property, and consequently, whether depreciation is allowable.

Which sections of the Income-tax Act were involved?

Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “SMC”, BENCH MUMBAI

Before: SHRI R.C.SHARMA, AM

For Appellant: Shri G.C. Lalka
For Respondent: Shri S.K. Mitra
Hearing: 07/09/2017Pronounced: 04/12/2017

आदेश / O R D E R PER R.C.SHARMA (A.M):

1.

This is an appeal filed by the assessee against the order of CIT(A)- 13, Mumbai dated 27/09/2016 for the A.Y.2012-13 in the matter of order passed u/s.143(3) of the IT Act.

2.

Grievance of assessee relates to treatment of income from warehouse as income from house property in place of income offered under the head ‘business and profession’.

3.

Rival contentions have been heard and record perused.

4.

Facts in brief are that the assessee company owns a warehouse at the MIDC TTC Industrial Area, Rabale, Navi Mumbai. The assessee had received warehousing charges to the tune of Rs.47.99 lakhs from one M/s. Om Waterhousing. The assessee offered warehousing charges as

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