M/S IRUS CORP.,NOIDA vs. ITO, NOIDA

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ITA 4902/DEL/2016Status: DisposedITAT Delhi16 January 2017AY 2012-133 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?

Following its own precedent for the preceding year, the Tribunal held that the rental income, based on the facts and circumstances, should be assessed under the head 'income from business'. The Assessing Officer is directed accordingly.

What were the facts?

The assessee's appeal concerns the assessment year 2012-13. The sole dispute is whether rental income should be taxed under 'income from house property' or 'income from business'.

What were the issues?

The primary issue is the correct head of income under which rental income should be assessed, specifically whether it constitutes business income or income from house property.

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘SMC-2’, NEW DELHI

Before: SHRI J. SUDHAKAR REDDY

This is an appeal filed by the Assessee directed against the order of the Ld. Commissioner of Income Tax (Appeals)-I, Noida dated 10.06.2016 pertaining to the Assessment Year (A.Y.) 2012- 13.

2.

The only issue in dispute is whether the rental income received by the assessee is to be assessed under the head ‘income from house property’ or under the head ‘income from business’. The ‘C’ Bench of the Tribunal in the assessee’s own case in ITA 814/Del/15 for the immediately preceding year 2010-11 vide order dt. 17th November, 2016 applied the judgement of the supreme court in the case of Rayala Corporation Private Limited in Civil

ITA 4902/Del/2016 Assessment Year 2012-13 Irus Corp vs. ITO, Noida Appeal number 3764/2016 and held that the income in question, under the facts and circumstances of the case, is to be assessed under the head ‘income from business’.

2.1. Consistent with the view taken therein, I direct the Assessing Officer to assess the income in question under the head ‘income from business’.

3.

In the result the appeal is allowed.

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