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2017 (1) TMI 570 - AT - Income TaxNature of income - Income received from Strand Book Stall for providing warehousing, binding, shrink wrapping, supervision charges and mailing charges - business income or income from house property - Held that:- The assessee has established that it was carrying on its activities of commercially exploiting its business asset, i.e. the said factory premises at Thane, to render the aforementioned services to M/s. Strand Book Stall for a consideration which constitute ‘business income’ . It is not disputed that this position, i.e. such income for rendering of similar services to M/s. Strand Book Stall was accepted as ‘business income’ as declared by the assessee, even in scrutiny assessments under section 143(3) of the Act for A.Y. 1996-97 and 2003-04. While the principle of res-judicata is not applicable to income tax proceedings, we observe that the authorities below have not brought on record any material to prove that the factual matrix of the case on this issue has undergone any change in the year under consideration in the case on hand. The factual matrix of the case on hand in similar to that of the case of CIT vs. NDR Warehousing P. Ltd. (2014 (12) TMI 189 - MADRAS HIGH COURT) and the same would squarely cover the issue in the case on hand. Moreover the Department having accepted the assessee’s position in earlier years, even in scrutiny assessments that the income from M/s. Strand Book Stall even though bearing the nomenclature of rent was exigible as ‘business income’, we find that it is nobody’s case that the factual matrix of the case has undergone any such change that required action that such income was to be taxed under the head ‘income from other sources’ and not ‘business income’ as declared by the assessee. - Decided in favour of assessee.
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