DCIT CC 7(2), MUMBAI vs. SHREEJI EXHIBITORS, MUMBAI

In this appeal, the only issue relates to the taxability of income received by the assessee from shopping mall. The respondent assessee is a partnership firm, which had constructed a commercial complex and leased out the same. It was also renting multiplex with five screens. The assessee was deriving rentals from various properties in the shopping mall and treated the same as income from business. The Assessing Officer however, following his stand for earlier assessment year of 2010-11, of treated the income so derived as taxable under the head income from house property. The CIT(A) has since disagreed with the Assessing Officer and upheld the plea of the assessee for treating such income as income from business. In coming to such conclusion, the CIT(A) referred to the decision of the Tribunal in assessee’s own case for assessment year 2009-10, which was rendered vide & 2196/M/2013 dated 14/08/2015. The Tribunal in its order dated 14/08/2015(supra) held that income/loss from the property was liable to be taxed as business income/loss in the present case and not under the head income from house property. Against such a decision of the CIT(A), Revenue is in further appeal before the Tribunal.

Before us, it was a common point between the parties that the order of the Tribunal dated 14/08/2015(supra), which has been relied upon by the CIT(A), continues to hold the field as it has not been altered by any higher authority. Therefore, in view of the aforesaid precedent, we find no error on the part of the CIT(A) in upholding the plea of the assessee. Consequently, the appeal of the Revenue is dismissed.

In the result, appeal of the Revenue is dismissed.