Income Tax Appellate Tribunal - Chennai
Sunitha Leather Trading Co (Madras) Pvt ... vs Ito Corporate Ward 6(4), Chennai on 3 July, 2019
आयकर अपील य अ धकरण, ए / एस एम सी यायपीठ, चे नई IN THE INCOME TAX APPELLATE TRIBUNAL 'A' SMC BENCH, CHENNAI ी एन.आर.एस. गणेशन, या यक सद य केसम BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER आयकर अपील सं./ITA Nos.1037, 1038, 1039 & 1040/Chny/2019 नधा"रण वष" / Assessment Years : 2010-11, 2012-13, 2014-15 & 2015-16 M/s Sunitha Leather Trading Co. The Income Tax Officer, (Madras) Pvt. Ltd., v. Corporate Ward - 6(4), No.7, Thiruneermalai Road, Chennai - 600 034. Pallavaram, Chennai - 600 044.
PAN : AAJCS 1457 P
(अपीलाथ'/Appellant) (()यथ'/Respondent)
अपीलाथ' क* ओर से/Appellant by : None
()यथ' क* ओर से/Respondent by : Shri Sanath Kumar Raha, JCIT
सन
ु वाई क* तार ख/Date of Hearing : 01.07.2019
घोषणा क* तार ख/Date of Pronouncement : 03.07.2019 आदे श /O R D E R All the appeals of the assessee are directed against the respective orders of the Commissioner of Income Tax (Appeals) - 15, Chennai, for the assessment years 2010-11, 2012-13, 2014-15 and 2015-16. Since common issue arises for consideration in all these appeals, I heard these appeals together and disposing the same by this common order.
2 I.T.A. Nos.1037 to 1040/Chny/19
2. The notice of hearing was served on the assessee by RPAD. The Registry has placed on record the postal acknowledgement as proof of service of notice. Even after the receipt of notice, the assessee chose to remain absent when the appeals were taken up for hearing. Therefore, I heard the Ld. Departmental Representative and proceeded to dispose the appeals on merit.
3. The only issue arises for consideration in all these appeals is whether the income earned by the assessee from letting out its property is income from house property or income from business?
4. Shri Sanath Kumar Raha, the Ld. Departmental Representative, submitted that the very same issue was examined by the Division Bench of this Tribunal for assessment year 2011-12 in I.T.A. No.685/Mds/2015. According to the Ld. D.R., the Division Bench found that the income from letting out of any premises of the assessee has to be assessed under the head "income from house property" and not income from business. This Tribunal also found that the property was continuously let out from the assessment year 2007-08 on year-to-year basis. In view of the decision of the Division Bench of this Tribunal in the assessee's own case in respect of the very same property, according to the Ld. D.R., the 3 I.T.A. Nos.1037 to 1040/Chny/19 CIT(Appeals) has rightly confirmed the order of the Assessing Officer.
5. Having heard the Ld. Departmental Representative and perused the relevant material available on record, this Tribunal finds that on account of sluggishness in the leather industry, the assessee could not use the entire building, therefore, the vacant areas in the premises were let out by the assessee to exporters for storage of their air cargo by way of stop gap arrangement. As per the assessee, there was no permanent intention to let out the building permanently. The assessee claimed before the lower authorities that it is a commercial property, therefore, the income therefrom has to be assessed only as income from business and not as income from house property. This Tribunal finds that the Division Bench of this Tribunal in the assessee's own case for assessment year 2011-12, examined this issue and found that the income from letting out very same premises has to be assessed under the head "income from house property". In fact, the CIT(Appeals) followed the decision of Division Bench of this Tribunal, therefore, this Tribunal do not find any reason to interfere with the order of the lower authority and accordingly the same is confirmed.
4 I.T.A. Nos.1037 to 1040/Chny/19
6. In the result, all the appeals filed by the assessee stand dismissed.
Order pronounced in the court on 3rd July, 2019 at Chennai.
sd/-
(एन.आर.एस. गणेशन) (N.R.S. Ganesan) या यक सद य/Judicial Member चे नई/Chennai, rd 2दनांक/Dated, the 3 July, 2019 Kri.
आदे श क* ( त3ल4प अ5े4षत/Copy to:
1. अपीलाथ'/Appellant 2. ()यथ'/Respondent
3. आयकर आयु6त (अपील)/CIT(A)-15, Chennai 4. Principal CIT-6, Chennai
5. 4वभागीय ( त न ध/DR 6. गाड" फाईल/GF.