AI Drafter 
TaxTMI 
TaxTMI 
TaxTMI 
2020 (2) TMI 568
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....he assessee filed copies of medical reports and treatment card of the hospital along with application for condonation of delay. It was only after improvement of his health and after resumption of office, he could notice that appeal against order of the ld.CIT(A) dated 23.10.2015 was left out, and if not challenged in further appeal then it would have cascading impact on the subsequent assessment years also. Therefore, assessee contacted tax consultant to challenge this adverse order. The ld.counsel for the assessee submitted delay was caused due to reason beyond control of the assessee, and therefore, the delay may be condoned in the interest of justice, equity and fair play. 3. On the other hand, the ld.DR objected to the condonation of day in filing of the appeal before the Tribunal. He further submitted that assessee being corporate body would have adequate manpower to look after its affairs in the absence of key person, and he therefore, submitted delay of more than one year should not be condoned. 4. I have duly considered rival contentions and gone through the record. Sub-section 5 of Section 253 contemplates that the Tribunal may admit an appeal or permit filing of ....
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....(supra). It reads as under: "Rule of limitation are not meant to destroy the right of parties. They are meant to see that parties do not resort to dilatory tactics, but seek their remedy promptly. The object of providing a legal remedy is to repair the damage caused by reason of legal injury. Law of limitation fixes a life-span for such legal remedy for the redress of the legal injury so suffered. Time is precious and the wasted time would never revisit. During efflux of time newer causes would sprout up necessitating newer persons to seek legal remedy by approaching the courts. So a life span must be fixed for each remedy. Unending period for launching the remedy may lead to unending uncertainty and consequential anarchy. Law of limitation is thus founded on public policy. It is enshrined in the maxim Interest reipublicae up sit finis litium (it is for the general welfare that a period be putt to litigation). Rules of limitation are not meant to destroy the right of the parties. They are meant to see that parties do not resort to dilatory tactics but seek their remedy promptly. The idea is that every legal remedy must be kept alive for a legislatively fi....
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....ave cascading effect on the subsequent years also. I am of the view that the reasons narrated by the assessee for delay in filing appeal before he Tribunal cannot be simply bruised aside or ignored. No assessee would opt to give away its legal right by deliberately making delay, more so, when he would not gain anything by not filing the appeal in time, therefore, in the interest of justice and fair play, I condone the delay and proceed to decide the appeal on merit. 8. In the appeal, the assessee has raised as many as five grounds, but sole issue involved in these grounds is that the ld.CIT(A) has erred in treating the income of the assessee under the head "income from other sources" instead of "business income". 9. Brief facts of the case are that assessee is engaged in the business of film exhibition. It has filed its return its return of income on 19.9.2012 declaring total loss of Rs.(-)30,24,753/-. The case of the assessee was selected for scrutiny assessment and notice under section 143(2) was issued and served upon the assessee. The AO has noticed that though the assessee stated to be engaged in the business of film exhibition, but no film exhibition activity was car....
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....ndum of association, the main objects inter alia include leasing, letting on hire of entertainment and recreation facilities, cinema threatres etc. The objects incidental or ancillary for achievement of main objects have also contained in clause (B)-1 of the Memorandum. The ld.counsel for the assessee reiterated that assessee-company has entered into Operation & Management Agreement with PVT Ltd. for the business of multiplex Complex with all the amenities, furniture & fixtures and plant & machineries. It has developed infrastructure keeping in mind the requirement of multiplexes business. The intention of the assessee-company was also to lease the different portion of different franchises for their outlets, and thereby commercially exploit its infrastructure, which is different from normal land owner whose intention would be to earn rental income. He relied upon the judgment of Hon'ble Gujarat High Court in the case of CIT Vs. Tirupati Organizers P.Ltd., ITA No.2663 of 2013 and others. 11. In the next fold of contention, the ld.counsel for the assessee submitted that alleged lease agreement, in other words, Operation and Management Agreement was executed on 6.3.2007. Unde....
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....the ld.CIT(A) has considered all aspects before holding that income from the leasing out of Cinema complex deserves to be assessed as income from other sources. 13. I have duly considered rival submissions and gone through the orders of the Revenue authorities. The question before us is, whether the receipts derived from leasing out of the cinema hall, along with furniture & fixtures, plant & machineries and other amenities, was "business income" as contended by the assessee or "income from other sources" as treated by the Department. Adverting to various aspects, I would like to take cognizance of the finding recorded by the AO in the Asstt.Year 2008-09 as well as 2010-11. The AO in both these years took cognizance of the fact that this complex has been given on lease. The finding of the ld.AO read as under: Asstt.Year 2008-09 (3.0) The assessee-company is engaged in film exhibition business and running Multiplex cinema hall, 'The assessee has given the complex on lease to PVR Ltd w.e.f, 16,3.2007. The assessee received lease income during the previous year. The assessee have shown total receipts at Rs. 1,78,85,414/- during the year. The details filed b....
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....ation because of new views they may entertain of the law of the case, or new versions which they present as to what should be a proper apprehension by the court of the legal result either of the construction of the documents or the weight of certain circumstances. If this were permitted, litigation would have no end, except when legal ingenuity is exhausted. It is a principle of law that this cannot be permitted and there is abundant authority reiterating that principle. Thirdly, the same principle, namely, that of setting to rest rights of litigants, applies to the case where a point, fundamental to the decision, taken or assumed by the plaintiff and traversable by the defendant, has not been traversed. In that case also a defendant is bound by the judgment, although it may be true enough that subsequent light or ingenuity might suggest some traverse which had not been taken." 30. Reference was also made to Parashuram Pottery Works Ltd. v. ITO [1977] 106 ITR 1 (SC) and then it was held: "We are aware of the fact that strictly speaking res judicata does not apply to income-tax proceedings. Again, each assessment year being a unit, what is decided in one year may not apply ....
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....ore 7th day of each calendar month. 16. Next important factor is provision under the Memorandum of Association. It has been highlighted that one of the business, which could be explored by the assessee is to lease, convert, entertain and recreation facility. Whole object clause has been placed before me, and reads as under: "1. To establish and carry on in India or elsewhere in the world the business to acquire, promote, run, manage, own, lease, convert, commercialize, handle,, operate, renovate, construct, maintain, improve, furnish, recondition, hire, let on hire, develop, consolidate, subdivide and organize, entertainment and recreation facilities, cinema theatres, night clubs, discotheques, places of amusement, video games, bowling alleys, theatrical and opera box offices, movie theatres, family recreation and also different types for entertainment like open theatres and musical cultural activities." 17. During the course of hearing judgment of Hon'ble jurisdictional High Court in the case of CIT Vs. Tirupati Organizers P.Ltd.(supra) which has been relied upon by the ld.counsel of the assessee. In this case, the assessee entered into a joint business agreement....
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....hinoor Tabacco Products (P) Limited. The electricity charges from October 1, 1989 to March 31, 1990, were paid to M/s. Mohanlal Hargovandas who were one of the members of the service centre and M/s. Saptarshi Services (P) Limited reimbursed them later. The assessee is having EPABX machine which facilitates providing telephone services to the occupants of the service centre. Besides this, the assessee is providing various services to the occupants like services of lift, services of receptionists, secretarial services, data processing, conference room, etc. The object of the said complex is that facilities to be provided with the building. Thus the assessee is providing a working place along with the various facilities." Against such decision, Revenue's appeal was dismissed by this Court. The decision of Supreme Court in case of Sambhu Investment (P) Limited [Supra] was rendered in different facts-situation. In such case, the assessee was owner of immovable property. It occupied a portion thereof and let out the rest to be used as table space to occupants, with furniture and fixtures and lights and air-conditioners. For such purpose, tenants paid monthl....