The Principal Commissioner Of Income Tax-1, Coimbatore v. M/S.sakthi Sugars Ltd., Coimbatore-18

The Honourable Mr.Justice T.S.SIVAGNANAM The Honourable Mr.Justice K.RAVICHANDRABAABU The Principal Commissioner of Income Tax-1, Coimbatore....Appellant/AppellantVsM/s.Sakthi Sugars Ltd., Coimbatore-18....Respondent/Respondent APPEAL under Section 260A of the Income Tax Act, 1961against the order dated 13.1.2017 made in ITA.No.478/Mds/2015 onthe file of the Income Tax Appellate Tribunal, Madras 'D' Benchfor the assessment year 2009-10 against Appellant office of theCommissioiner of Income Tax (Appeals)-1, Coimbatore dated30/12/2014 and made in Appeal.No.366/11-12 and against the Assistant Commissioner of Income-Tax CompanyCircle-1(i) Coimbatore dated 30/12/2011 PA.No./GIR.No.AADCS06518.For Appellant : Mr.T.R.Senthil Kumar, SSCFor Respondent : Mr.R.Venkatanarayanan for M/s.Subbaraya Aiyar Padmanabhan Judgment was delivered by T.S.SIVAGNANAM,J Mr.R.Venkatanarayanan, learned counsel accepts notice onbehalf of the respondent. Heard both. 2. This appeal has been filed by the Revenue raising thefollowing substantial questions of law :"i. Whether the Appellate Tribunal isright in allowing the rental income of theassessee as 'business income' instead of'income from house property' when theprincipal object of the assessee company isnot letting out of properties ? and ii. Whether the Appellate Tribunal isright in allowing the rental income of theassessee as 'business income' ignoring theApex Court's judgment in the case of KeyaramHotels [(2015 63 Taxmann.com 301] ?" 3. The appeal filed by the Revenue was dismissed by theTribunal by following the earlier order of the Tribunal inI.T.A.No.614/Mds/2012 dated 30.1.2015 in the assessee's own casefor the assessment year 2008-09. 4. When this matter came up for hearing on 08.12.2017, weposed a question to the learned Senior Standing Counsel for theRevenue as to whether the Department accepted the earlierdecision of the Tribunal in the assessee's own case for theassessment year 2008-09. The learned Senior Standing Counselsought for an adjournment to verify the facts. Today, when thecase is taken up for hearing, it is reported that the Departmentaccepted the earlier order of the Tribunal in the assessee's owncase for the assessment year 2008-09 and that no appeal has beenfiled against that order. Thus, we find that the substantialquestions of law have to be answered in favour of the assesseeand against the Revenue. 5. In the light of the earlier decision of the Tribunaldated 30.1.2015 in the assessee's own case for the assessmentyear 2008-09, which has attained finality, the above tax caseappeal is dismissed. No costs. Sd/- Assistant Registrar(CCC) //True Copy// rs Sub Assistant Registrar To 1.The Income Tax Appellate Tribunal, Madras 'D' Bench. 2.The Commissioner of Income Tax(Appeals-1)Coimbatore 3. The Assistant Commissionerof Income Tax Company Circle-1(i)Coimbatore +1 cc to M/s.T.R.Senthil kumar Advocate sr 88581 +1 cc to M/s.Subbaraya Aiyar Padmanabhan Advocate sr 29793 TCA.No.621 of 2017 rr(co)aa26/02/2018