JYOTI ESTATE Vs. DY COMMISSIONER OF INCOME TAX
LAWS(GJH)-2014-11-148
HIGH COURT OF GUJARAT
Decided on November 18,2014

Jyoti Estate Appellant
VERSUS
DY COMMISSIONER OF INCOME TAX Respondents

JUDGEMENT

- (1.) Being aggrieved and dissatisfied with the impugned judgment and order passed by the Income Tax Appellate Tribunal, Ahmedabad Bench (hereinafter referred to as 'the Tribunal') dated 21.07.2005 in ITA No. 209/Ahd/1998 for the Assessment Year 1994- 95 respectively, the assessee has preferred the present Tax Appeal for consideration of the following substantial question of law which were framed while admitting the matters: "(A) Whether, on the facts and in the circumstances, the Tribunal was justified in holding that the rental income from letting out of warehouses/godowns together with various services rendered to the occupant did not constitute a business activity of the appellant and as such the income arising therefrom was not assessable under sec. 28 of the Income-tax Act, 1961 as business income? Whether, on the facts and circumstances of the case, the Income Tax Appellate Tribunal should not have arrived at conclusion that the income from letting out of the warehouse/godown was assessable as property income under sec. 22 of the Income-tax Act, 1961?"
(2.) The appellant, a partnership firm, is engaged mainly in the business of letting out warehouses/godowns for storage purposes alongwith infrastructure facilities. The appellant firm had filed its return of income for the assessment years in question claiming the rental income from warehouse as business income. However, the assessment officer held that the income from letting out the warehouse/godown was not assessable as business income but was 'income from house property'. On appeal the CIT (Appeals) held that the income from letting out of warehouses was assessable as business income.
(3.) On appeal before the ITAT by the revenue, by impugned judgment and order, ITAT allowing the appeal held that the rental income derived from letting out of warehouses/godowns was liable to be taxed as income from house property and not as income from business. Being aggrieved and dissatisfied with the impugned judgment and order passed by the ITAT, the assessee has preferred the present Tax Appeal for consideration of the aforesaid substantial questions of law.;


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