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TMI Blog2013 (12) TMI 782X X X X Extracts X X X X X X X X Extracts X X X X ..... venience. 2. First, we will take-up ITA.No.1230/Hyd/2013 for the assessment year 2007-2008 of the assessee. It was submitted by the A.R. of the assessee in the assessment proceedings as follows : "That M/s. Rentworks India Pvt. Ltd. provided some Racking systems as per specific request of H.L.L. It is true that the warehouse used by the H.L.L. consists of Racking systems containing G+6 Racking arrangements. But, these Racking Systems are not owned by the assessee. Those Racking systems are taken on lease (hire) from the M/s. Racking Works India Pvt. Ltd. Mumbai and whatever bills raised by them (hire charges) are being reimbursed by H.L.L. The assessee merely acts as a mediator between M/s. Racking Works India Ltd. (the owner of equipment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as only exploiting the property as a owner by leasing out the same and realizing income by way of rent. The A.O. observed that the fact that one of the object of the company was to construct and let out of godown or the land was taken on lease or that the third party (Racking Works) provided Racking systems to the lessee does not help the assessee's case and involvement of the assessee in arranging the Rack systems and also the role played by it for regular collection of rents does not affect the nature of rent received by it. Hence, A.O. held such rental income derived out of letting the godown is liable to be assessed under the head 'Income from House Property' only. Accordingly, the lease rentals are brought to tax under the head 'House ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... laim the payments by debiting to profit and loss account, the question of disallowance of those amounts by invoking the provisions of section 40a(ia) does not arise. 6. The learned D.R. on the other hand, relied upon the Order of the Assessing Officer and CIT(A). 7. We have heard both the parties and perused the material available on record. We find that the facts in the instant case are similar to that one which was decided by the Coordinate Bench of this Tribunal in the case of M/s. Narne Constructions (P) Ltd. in ITA. No. 1462 & 1463/Hyd/2011 for the assessment year 2004-2005 by order dated 25.01.2012 wherein the Tribunal observed as follows : "10. We have heard both the parties on this issue. The contention of the assessee is that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TA.No.1230/Hyd/2013 of the assessee is allowed. 11. ITA.No.1298/Hyd/2013 - A.Y. 2007-2008 : Through this appeal the Revenue has raised 8 grounds which are as under : 1. The order of the learned CIT(A) is erroneous both on facts and law. 2. The learned CIT(A) has erred both on facts and in law in holding that as the property was let out for commercial purpose, the income there from should be treated as income from business. 3. On the facts and in the circumstances of the case the learned CIT(A) erred by not distinguishing any of the findings and arguments of the assessment order. He has merely concluded that since the warehouse/godown were used for commercial purpose, the rent received by the assessee from them should be assessed as busi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessing Officer is not justified in treating the income from warehouse as income from house property. Against this, the Revenue is in appeal before us. 13. We have heard both the parties and perused the material on record. We find that identical grounds have been raised by the Revenue in the appeal in ITA.No.1287/Hyd/2011 in assessee's own case for assessment year 2006-2007 wherein the Hon'ble ITAT, Hyderabad Bench by order dated 20th June, 2013 has held as follows : 4. "We have heard both the parties and perused the material on record. This issue is covered in favour of the assessee. The assessee constructed a warehouse/godown for specific purpose and let out the same to M/s. Hindustan Lever Ltd., and the income derived is to be treate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... regard to letting out of the furniture & fixtures and generator and treated the income from them as income from other sources and also allowed depreciation on the said items. On appeal, the CIT(A) held that the lease rent received on hiring of furniture & fixtures and generator has to be treated as business income as the warehouse rent has been treated as business income. Against this, the Revenue is in appeal before us. 7. We have heard both the parties and perused the material on record. It is an admitted fact that the assessee is carrying on the business of letting out warehouse/godown for commercial purposes. The furniture & fixtures and generator are attached to that business of the assessee. This leasing of assets cannot be isolated ..... X X X X Extracts X X X X X X X X Extracts X X X X
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