What did the High Court hold?

The High Court held that the ITAT's decision on the valuation of closing stock was correct, as it was consistent with a prior judgment. The court also found that rent receipts, including air conditioning charges, should be assessed as 'Income from House Property', aligning with a separate order in a related case.

The Revenue appealed against an ITAT order concerning the valuation of closing stock and the assessment of rent receipts including air conditioning charges. The High Court had previously ruled on similar issues for the assessee in other assessment years.

What were the issues?

The key issues were whether the ITAT correctly adjusted the valuation of closing stock and whether rent receipts including air conditioning charges should be taxed as 'Income from House Property'.

CIT vs Dlf Universal Ltd | Delhi High Court 2017

$~ * IN THE HIGH COURT OF DELHI AT NEW DELHI 25 +

ITA 176/2010

COMMISSIONER OF INCOME TAX

..... Appellant Through: Mr. Dileep Shivpuri, Sr. Standing Counsel with Mr. Sanjay Kumar, Jr. Standing Counsel

versus

DLF UNIVERSAL LTD.

..... Respondent Through: Mr. Ajay Vohra, Senior Advocate with Ms. Kavita Jha and Mr. Vaibhav Kulkarni, Advocates

CORAM: JUSTICE S. MURALIDHAR JUSTICE CHANDER SHEKHAR

O R D E R %

18.05.2017

This appeal by the Revenue under Section 260 A of the Income Tax Act 1961 ('Act') is directed against the order dated 6th June 2008 passed by the Income Tax Appellate Tribunal (ITAT) in ITA No.695/Del/2003 for Assessment Year (AY) 1999-2000.

While admitting this appeal on 30th November 2011, this Court framed for consideration the following questions of law: (i) Whether the ITAT was correct in law in upholding the order of Commissioner of Income Tax (Appeals) and giving ITA 176/2010

Page 1 of 2

the relief of Rs.4,85,240/- regarding valuation of closing stock by reducing valuation of closing stock by the sellable area at 60.77%?

(ii) Whether the CIT (A) erred in law in directing the AO to assess the rent receipts form DLF Centre which also includes air conditioning charges as ‘Income from House Property’?

Question (i) stands answered in favour of the Assessee by the judgment dated 21st December, 2016 passed by this court in ITA Nos. 159 and 326 of 2010 for AY 1994-95.

As far as question (ii) is concerned, by separate order passed by this court in today in ITA 407 of 2009 for AY 1997-98 filed by the Revenue against the same Assessee, the question stands answered in favour of the Assessee and against the Revenue.

The appeal is accordingly dismissed.

S. MURALIDHAR, J

CHANDER SHEKHAR, J MAY 18, 2017 B

ITA 176/2010

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COMMISSIONER OF INCOME TAX vs. DLF UNIVERSAL LTD.

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