ITO, WARD-2(3), KOLKATA, KOLKATA vs. M/S LEXOTIC EXPORTS PVT. LTD., KOLKATA

PDF · subscribers
ITA 281/KOL/2017Status: DisposedITAT Kolkata28 December 2017AY 2011-122 pages

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

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal upheld the CIT(A)'s decision that the income derived from renting out premises along with composite services is assessable under the head 'Income from House property'. The revenue's appeal was dismissed.

What were the facts?

The assessee earned income by renting out premises and rendering composite services. The dispute was whether this income should be taxed under 'Income from business' or 'Income from House property'. The CIT(A) held it to be under 'Income from House property'.

What were the issues?

The primary issue was the correct head of income under which rental income with composite services should be assessed. The Tribunal had to determine if it falls under 'Income from business' or 'Income from House property'.

Which sections of the Income-tax Act were involved?

Section 143(3)

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

Income Tax Appellate Tribunal, “SMC” BENCH : KOLKATA

Before: Shri J.Sudhakar Reddy, AM ]

Hearing: 28.12.2017Pronounced: 28.12.2017

ORDER This appeal by the assessee arises out of the order of the Learned Commissioner of Income Tax (Appeals)-11, Kolkata [ in short the ld CITA] dated 28.11.2016 against the order passed by the ITO, Ward-2(3), Kolkata [ in short the ld AO] under section 143(3) of the Income Tax Act, 1961 (in short “the Act”) dated 31.01.2014 for the Assessment Year 2011-12.

2.

After hearing rival contentions. I find that the sole issue is whether, the income earned by the assessee by renting out the premises along with rendering certain composite services, is assessable under the head “Income from business” or under the “Income from House property”.

3.

The Ld. CIT(A) has held that the consideration received by the assessee was for composite services. The Ld. CIT(A) applied the decision of Hon'ble Supreme Court in the case of East India Housing and Land Development Trust India vs. CIT reported in 42 ITR 49 (SC) and the judgment in the case of Chennai property and Investments Ltd.

M/s Lexotic Exports Pvt. Ltd. A.Yr.2011-12 Chennai vs. CIT in Civil Appeal No. 4491/2004 judgment dated 09.04.2015 and held that the income in question is assessable under the head “Income from house property” only. The Ld. DR could not controvert the factual findings of the Ld. CIT(A). Hence, I uphold the same and dismiss the appeal.

4.

In the result, the appeal of the revenue is dismissed.

Order pronounced in the Court on 28.12.2017 Sd/- [J. Sudhakar Reddy] Accountant Member Dated : 28.12.2017 SB, Sr. PS Copy of the order forwarded to:

1. 1. ITO, Wd-2(3), Kolkata, 7th Floor, R/No. 21, Aayakar Bhawan, P-7, Chowringhee Square, Kolkata-69.

2. M/s Lexotic Exports Pvt. Ltd., Block: EN-12, Sector-V, Salt Lake City, Kolkata-91 3..C.I.T.(A)- , Kolkata 4. C.I.T.- Kolkata.

5. CIT(DR), Kolkata Benches, Kolkata.

Recent GST High Court judgments

Search GST case law →