DCIT, CHENNAI vs. RAYALA CORPORATION PVT. LTD., CHENNAI

This appeal of the Revenue is directed against the order of the Commissioner of Income Tax (Appeals) – 3, Chennai, dated 11.01.2016 and pertains to assessment year 2012-13.

The first issue arises for consideration is classification of income from letting out of properties.

We have heard Shri Supriyo Pal, the Ld. Departmental Representative and Sh. Saroj Kumar Parida, the Ld.counsel for the assessee. This issue was considered in the assessee's own case by the Apex Court and found that the income from letting out of property is a business income. In view of the judgment of Apex Court in the assessee's own case, which is reported in 2016-TIOL- 119-SC-IT, this Tribunal do not find any reason to interfere with the order of the lower authority and accordingly the same is confirmed.

The next issue arises for consideration is disallowance of expenditure under Section 14A of the Income-tax Act, 1961 (in short 'the Act').

We find that this issue also admittedly covered by the order of co-ordinate Bench of this Tribunal in the assessee's own case for assessment year 2011-12 in I.T.A. No.908/Mds/2015. In view of the above, this Tribunal do not find any reason to interfere with the order of the lower authority and accordingly the same is confirmed.

In the result, the appeal filed by the Revenue is dismissed.