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TMI Blog2016 (4) TMI 550X X X X Extracts X X X X X X X X Extracts X X X X ..... ded that the warehouse at Kandla Port has been utilsied for business purposes by the assessee and hence exempt u/s 2(ea)(i)(3) of the Act . It is also in the nature of commercial establishments and hence exempt u/s 2(ea)(i)(5) of the Act . Thus we have no hesitation in deleting the addition made by the Learned AO in bringing the warehouse at Kandla Port to wealth tax. - Decided in favour of assessee - WTA No. 50/Kol/2014 - - - Dated:- 4-3-2016 - Shri Mahavir Singh, Judicial Member And Shri M. Balaganesh, Accountant Member For the Appellant : Mrs. Arti Debnath, CA, ld. AR For the Respondent : Shri Sridhar Bhattacharya, JCIT, ld. Sr.DR ORDER Shri M. Balaganesh, AM This appeal of the assessee arises out of the ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng, transportation and storage of food grains in the warehouse at Kandla Port. The assessee argued that the is not only getting rental income from the storage of food grains but also earning handling charges and transportation charges, since all the activities are integrated in nature and accordingly claimed that the said warehouse is used for the purpose of business of the assessee. The assessee had also claimed deduction u/s 80IB(11A) of the Income Tax Act, 1961 in respect of this activity carried out in Kandla Port warehouse which has been granted by the Learned AO. The assessee claimed that the it has shown handling income of ₹ 47.94 lakhs and Transportation income of ₹ 54.76 lakhs. The Learned AO not appreciating the conten ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ous income tax assessment orders for the Asst Years 2006-07 , 2009-10 , 2010-11 2011-12 together with the copies of income tax returns and tax audit report for the assessment year under appeal. We find from the scrutiny assessment orders passed by the Learned AO in income tax proceedings, the deduction claimed u/s 80IB of the Act by the assessee out of profits derived from the integrated business activity of handling, transportation and storage of food grains in the warehouse at Kandla Port. We find that the rental income derived by the assessee from warehouse at Kandla port has been offered to tax as income from business which has been accepted by the Learned AO in income tax proceedings. We find that the revenue had placed reliance on t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for reconsideration of the issue afresh and in accordance with law. In view of the above, the reliance placed by the revenue on the Pune Tribunal (supra) is no longer valid. In the instant case, it is not in dispute that the Learned AO had accepted the rental income derived from letting out of the warehouse as income from business. It is not in dispute that the assessee had indeed derived income from handling and transportation of food grains and claiming deduction u/s 80IB of the IT Act, 1961 which is also granted by the Learned AO in scrutiny assessment proceedings. Hence it can be safely concluded that the warehouse at Kandla Port has been utilsied for business purposes by the assessee and hence exempt u/s 2(ea)(i)(3) of the Act . ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in order to bring the case to be covered by this item, the nature and purpose of use of the property is commercial irrespective of the fact whether it is used or occupied either by the assessee himself or by anybody else for the purpose of any business or profession carried on by them, as the case may be. It was held that the word commercial means something, which is used in or related to a business or a trade. Commercial means relating to or engaged in or used for commerce. The word establishment means an organization, building, construction, shop, store, concern or corporation. Considering the above definition of asset, it was held that the let out properties, which are in the nature of commercial establishments or complexes, could n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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