sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
From the Courts »
 Samarpan Charitable Trust, C/o M/s Anuj Goyal & Co., CAs, 204, Deep Complex, Begum Bridge Road, Meerut. vs CIT(E), 5, Ashok Marg, Lucknow.
 Sunita Agarwal, L-5, Hauz Khas Enclave New Delhi vs. ACIT
 Archna Garg D/o. Sh. Mahesh Chand 164-Devi Nagar, S.K.Road, Meerut vs. ITO, Ward-1(1), Meerut
 Smt. Rita Singh RZ-71, 3rd Floor, Indira Park, Uttam Nagar, New Delhi- 110057 vs. ITO, Ward-70(1), New Delhi
 CIT vs. Shyam Telelink Ltd (Delhi High Court)
  Council of ICAI vs. Gurvinder Singh (Supreme Court)
 Shri Amar Nath Goenka, New Delhi – 110 070. vs. The ACIT, Circle-20(1), New Delhi.
 M/s KSD Charitable Trust, C/o Ganesh Cold, Storage, Meerut VS. Assistant Commissioner of Income Tax, Circle-1,
 Avaya India Pvt. Ltd. 202, Platina, 2nd Floor, Plot No. C-59, G-Block, Bandra Kurla Complex, Bandra (E), Mumbai, Maharashtra. vs. Addl. Cit Special Range-1 New Delhi.
 Sita Bhagi 83, Sukhdev Vihar, New Delhi. vs. ACIT Circle 65(1) New Delhi.
 ACIT vs. Janak Global Resources Pvt. Ltd (ITAT Chandigarh)

Prakash Vasantbhai Golwala vs. ACIT (ITAT Ahmedabad)
November, 06th 2013

Law of jurisdictional High Court is not binding if there is a later contrary judgement of non-jurisdictional High Court. S. 22: Property used by firm in which assessee-owner is partner is not used for assessee’s business & not entitled for exemption

The assessee, a partner in a firm, was the owner of a house property. He claimed that the house property was used by the employees of a firm in which he was a partner and that it should be considered to have been used for a business carried on by him. The assessee relied on CIT v/s. Rasiklal Balabhai 119 ITR 303 (Guj) where it was held that the annual letting value (ALV) of a godown owned by the assessee and used for the business carried on by him in partnership was not liable to be included in his total income u/s 22. However, the AO & CIT(A) relied on the contrary judgement in Prodip Kumar Bothra 244 CTR 366 (Cal) where it was held that house property income is not taxable only if the property is used for the assessee’s one’s own business and is not exempt if used for the business of the firm in which the assessee is a partner. On appeal by the assessee to the Tribunal HELD dismissing the appeal:

(i) Though the jurisdictional High Court in Rasiklal Balabhai 119 ITR 303 held that the annual letting value of house property owned by the assessee and used for the business carried on by him in partnership was not liable to be included in his total income u/s 22, the Calcutta High Court has dissented from this view in Prodip Kumar Bothra 244 CTR 366 and held that the exemption in respect of house property cannot be allowed to assessee if the property is used by the partnership firm because the owner of the house property and the occupier of the property must be the same person. The Karnataka High Court in K.N. Guruswamy 146 ITR 34 (Kar) and the Allahabad High Court in Shiv Mohan Lal 202 ITR 60 (All) & Mustafa Khan 276 ITR 602 (All) has taken the same view as the Calcutta High Court that user by a partnership firm/ HUF is not user by the assessee-owner for business purposes. In view of the divergent views expressed by the High Courts, the thumb rule that the latest decision of the High Court is required to be followed to maintain judicial discipline. As the judgement of the (jurisdictional) Gujarat High Court is earlier in point of time and the judgement of the (non-jurisdictional) Calcutta and other High Courts is later in point of time, the view expressed by the Revenue Authorities has to be affirmed and the assessee’s ground dismissed;

(ii) Also, a litigant, especially the learned counsel, who is an expert, is expected to place before the Court all decisions either in favour or against him. We are constrained to note that this fair approach was not adopted in this case.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Reengineering Software Re-engineering Software Reverse Engineering Software Reverse Development Software Change Modulation Software Conversion Software Re-creation Software Re-development

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions