TMI Blog2021 (8) TMI 666X X X X Extracts X X X X X X X X Extracts X X X X ..... nce of the assessee. - Decided in favour of the assessee - T.C.A.No.219 of 2017 - - - Dated:- 10-8-2021 - Honourable Mr.Justice T.S.Sivagnanam And Honourable Mr.Justice Sathi Kumar Sukumara Kurup For the Appellant : Ms.S.Sriniranjani For the Respondent : Mr.S.Rajesh, Standing Counsel JUDGMENT T.S.SIVAGNANAM, J. This appeal, by the appellant/assessee, filed under Section 260A of the Income Tax Act, 1961 is directed against the order dated 05.10.2016, made in I.T.A.No.470/Mds/2016 on the file of the Income Tax Appellate Tribunal 'A' Bench, Chennai for the assessment year 2012-13. 2.The appeal was admitted on 07.04.2017 on the following substantial questions of law:- (i) Whether on facts and in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of law, which have been framed for consideration, have been answered against the Revenue by a Division Bench of this Court in T.C.A.Nos.732 and 733 of 2018 dated 07.07.2020 to which, one of us (TSSJ) was a party. The operative portion of the judgment reads as follows:- 4. We take up for consideration the substantial question of law no.2 referred above. The tribunal in paragraph No.8.1, held that the Assessing Officer is not justified in making excessive disallowance and that the CIT(A) rightly restricted the disallowance to the extent the dividend income declared by the assessee. In fact the tribunal records that the revenue could not controvert the findings rendered by the High Court of Delhi in the case of Joint Investments Private ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iture incurred in relation to income which does not form part of the total income under the provisions of the Act has to be disallowed under s. 14A. Income which does not formpart of the total income is broadly adverted to as exempt income as an abbreviated appellation. Under sub-s. (2), the AO is required to determine the amount of expenditure incurred by an assessee in relation to such income which does not form part of the total income under the Act in accordance with such method as may be prescribed. The method, having regard to the meaning of the expression 'prescribed' in s. 2(33), must be prescribed by rules made under the Act. What merits emphasis is that the jurisdiction of the AO to determine the expenditure incurred in re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... therefore, rightly dismissed the appeal filed by the revenue. Thus, we find that the Substantial Question of Law No.2 has to be answered against the revenue and in favour of the assessee. 8. So far as Substantial Question of Law No.1 is concerned, it has to be seen as to whether the income derived from letting out of the property in an industrial park/SEZ including the amenities and the income received by the owners for such property and the amenities therein would be business income in the hands of the owner of the property. 9. We need not labour much on this issue, on account of the circular No.16 of 2017 issued by the CBDT dated 25.04.2017. The CBDT after taking note of the two decisions of the Karnataka High Court held that it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed from letting out of the property with all amenities and facilities would be income from business and cannot be assessed either as income from house property or as income from other sources. The said decision of the Hon'ble Division Bench was appealed against by the revenue before the Hon'ble Supreme Court in SLP No.11638 of 2013 and we are informed that the appeal was dismissed on 27.01.2020 on the ground of Low Tax Effect. 12. Considering all those facts as wells as the circular issued by CBDT, substantial question of law No.1, has to be answered against the revenue and in favour of the assessee. The Tax Case Appeals are dismissed and the Substantial Questions of Law are answered against the revenue. No Costs. 5.F ..... X X X X Extracts X X X X X X X X Extracts X X X X
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