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

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ITA 892/CHNY/2016Status: DisposedITAT Chennai29 March 2017AY 2012-133 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 lower authority's order, confirming that income from property letting is business income, as decided by the Apex Court in the assessee's own case. The disallowance under Section 14A was also confirmed based on a co-ordinate bench's decision in the assessee's own case.

What were the facts?

The Revenue appealed against the CIT(A)'s order concerning the assessment year 2012-13. The appeal involved two main issues: the classification of income from property letting and the disallowance of expenditure under Section 14A.

What were the issues?

The primary issues were the correct classification of rental income as business income and the validity of disallowance of expenses under Section 14A.

Which sections of the Income-tax Act were involved?

Section 14A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘B’ BENCH, CHENNAI

Before: SHRI N.R.S. GANESAN & SHRI D.S. SUNDER SINGH

Hearing: 27.02.2017Pronounced: 29.03.2017

आदेश /O R D E R

PER N.R.S. GANESAN, JUDICIAL MEMBER:

1.

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.

2.

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

3.

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.

4.

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

5.

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.

6.

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

Order pronounced on 29th March, 2017 at Chennai.

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