ACIT,1(1), Indore vs. M.P. Entertainment & Developers P. Ltd., Indore

Parties Involved

Facts Summary

The assessee-company, engaged in the activity of running and managing a shopping-cum-entertainment mall named and styled as 'Malhar Mega Mall' situated at Indore, filed return of income for Assessment Year 2015-16 declaring a total income of (-) Rs. 1,76,01,479/-. The case was selected for scrutiny and statutory notices u/s 143(2)/142(1) were issued. Ultimately, the Assessing Officer completed assessment vide order dated 30.12.2017 u/s 143(3) determining total income at Rs. 44,00,853/- after making certain adjustments. One of the adjustments made by the Assessing Officer was due to re-characterization of rental income earned by the assessee from the mall as 'Income from House Property' in place of 'Income from Business or Profession' shown by the assessee. The assessee contested this adjustment in first-appeal whereupon the Commissioner of Income-tax (Appeals) accepted the claim of the assessee and reversed the order of the Assessing Officer. Now, aggrieved by the order of the Commissioner of Income-tax (Appeals), the revenue has come in this appeal before the Income Tax Appellate Tribunal.…

Legal Issues

• 1. Whether the Commissioner of Income-tax (Appeals) has erred in allowing the appeal of the assessee without appreciating the facts and circumstances of the case.
• 2. Whether the Commissioner of Income-tax (Appeals) has erred in treating business income of the assessee whereas the assessee owning the Mall had let out the shops to various tenants for carrying out their business therefrom.
• 3. Whether the Commissioner of Income-tax (Appeals) has erred in treating business income of the assessee whereas the assessee had house property income as per the rent agreement made with various tenants.

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

Precedents Relied Upon

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