ITO 9(1)(2), MUMBAI v. BEZEL PHARMA P. LTD, MUMBAI

ITA 4571/MUM/2010 | 2007-2008
Pronouncement Date: 29-07-2011 | Result: Dismissed

Appeal Details

RSA Number 457119914 RSA 2010
Assessee PAN AABCB3699L
Bench Mumbai
Appeal Number ITA 4571/MUM/2010
Duration Of Justice 1 year(s) 1 month(s) 27 day(s)
Appellant ITO 9(1)(2), MUMBAI
Respondent BEZEL PHARMA P. LTD, MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 29-07-2011
Appeal Filed By Department
Order Result Dismissed
Bench Allotted B
Tribunal Order Date 29-07-2011
Assessment Year 2007-2008
Appeal Filed On 02-06-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH B MUMBAI BEFORE SHRI R.S. SYAL (AM) & SHRI N.V. VASUDEVAN (JM) I.T.A. NO.4571/MUM/2010 (A.Y. 2007-08) INCOME-TAX OFFICER-9(1)(2) ROOM NO.226 AAYKAR BHAVAN M.K.ROAD MUMBAI-400 020. VS. M/S. BEZEL PHARMA PVT. LTD. 99 GOVT. INDUSTRIAL ESTATE KANDIVLI (W) MUMBAI-400 067. PAN: AABCB3699L APPELLANT RESPONDENT APPELLANT BY SHRI ABANI KANTA NAYAK. RESPONDENT BY SHRI V .G. GINDE. DATE OF HEARING 26-07-2011 DATE OF PRONOUNCEMENT 29-07-2011 O R D E R PER R.S. SYAL AM : THIS APPEAL BY THE REVENUE ARISES OUT OF THE ORDER PASSED BY THE CIT(A) ON 17-03-2010 IN RELATION TO THE ASSTT. YEAR 2007-0 8. 2. THE ONLY EFFECTIVE GROUND RAISED BY THE REVENUE READS AS UNDER : ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE LD. CIT(A) ERRED IN HOLDING THAT CONDUCTING CHA RGES RECEIVED ON LETTING OUT BUILDING/PLANT AND MACHINER Y ARE PART OF BUSINESS INCOME WITHOUT APPRECIATING THE FACT THAT AT THE TIME OF AGREEMENT THE ASSETS CEASED TO BE B USINESS ASSETS AND THEREFORE CONDUCTING CHARGES RECEIVED O N HIRING BUILDING/PLANT AND MACHINERY ARE TO BE TAXED UNDER THE HEAD INCOME FROM HOUSE PROPERTY AND INCOME F ROM OTHER SOURCES. 3. BRIEFLY STATED THE FACTS OF THE CASE ARE THAT T HE ASSESSEE DERIVED CERTAIN INCOME AS CONDUCTING CHARGES WHICH WAS DECLARED AS BUSINESS INCOME. THE AO TREATED SUCH INCOME AS FALLING UNDER THE HEAD INCO ME FROM HOUSE PROPERTY. WHEN THE MATTER CAME UP BEFORE THE LD. CIT(A) HE VIDE PARA 2 OF THE IMPUGNED ORDER UPHELD THE ASSESSEES POINT OF VIEW BY RELYI NG ON THE TRIBUNAL ORDER ITA NO.4571/M/10 BEZEL PHARMA P.LTD. 2 PASSED IN THE ASSESSEES OWN CASE IN ASSTT. YEAR 20 01-02 BY HOLDING THAT THE AMOUNT RECEIVED FROM M/S. ELAN PHARMACEUTICALS PVT. LTD. WAS IN THE NATURE OF RECEIPTS FROM BUSINESS AND HENCE ASSESSABLE UNDER T HE HEAD PROFITS AND GAINS OF BUSINESS. A COPY OF THE SAID ORDER HAS BEEN PLACED ON RECORD. IT IS OBSERVED FROM THE PAPER BOOK FILED BY THE ASSESSEE THAT THE TRIBUNAL IN ASSTT. YEARS 2001- 02 AND 2002-03 ALONG WITH A COMBINED ORDER FOR ASST T. YEARS 2004-05 AND 2005- 06 HAS DECIDED THIS ISSUE IN ASSESSEES FAVOUR. COP IES OF ALL THE ORDERS HAVE BEEN PLACED ON RECORD. THE LD. D.R. COULD NOT POINT OUT AS TO WHETHER ANY OF THESE ORDERS HAS BEEN REVERSED OR MODIFIED BY THE HONBLE HIGH COURT IN ANY MANNER. SINCE THE LD. CIT(A) HAS DECIDED THE ISSUE IN ASSES SEES FAVOUR BY RELYING ON THE ORDERS PASSED BY THE TRIBUNAL IN ASSESSEES OWN CAS E IN OUR CONSIDERED OPINION THERE IS NO JUSTIFICATION IN DEVIATING FROM THAT. W E THEREFORE UPHOLD THE IMPUGNED ORDER. 4. IN THE RESULT THE APPEAL IS DISMISSED. ORDER PRONOUNCED ON THE 29TH DAY OF JULY 201 1. SD/- SD/- (N.V. VASUDEVAN) (R.S. SYAL) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI: 29TH JULY 2011. NG: COPY TO : 1. DEPARTMENT. 2.ASSESSEE. 3 CIT(A)-19 MUMBAI. 4 CIT-9 MUMBAI. 5.DR B BENCH MUMBAI. ITA NO.4571/M/10 BEZEL PHARMA P.LTD. 3 6.MASTER FILE. (TRUE COPY) BY ORDER ASST.REGISTRAR ITAT MUMBAI. ITA NO.4571/M/10 BEZEL PHARMA P.LTD. 4 DETAILS DA TE INITIALS DESIGN ATION 1. DRAFT DICTATED ON 26-07- 2011 SR.PS/ 2. DRAFT PLACED BEFORE AUTHOR 27-07- 2011 SR.PS/ 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS SR.PS/ 6. KEPT FOR PRONOUNCEMENT ON SR.PS/ 7. FILE SENT TO THE BENCH CLERK SR.PS/ 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK 9. DATE ON WHICH FILE GOES TO THE AR 10. DATE OF DISPATCH OF ORDER *