TaxTMI 
TaxTMI 
2022 (3) TMI 246
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....le High Court of Madras in Revenue's appeal as well as assessee's appeal. The Hon'ble High Court in Tax Case Appeal Nos. 767 to 769 of 2019 vide order dated 09.10.2020 has set aside the order of the Tribunal and directed to decide the issues afresh by observing in Para 8 & 9 as under:- 8. Though they were not raised in the same form before the Tribunal, we find that there was an argument to that effect, which has not been dealt with by the Tribunal. Therefore, we are inclined to interfere with the impugned order and remand the matters to the Tribunal for a fresh consideration. That apart, the Revenue was also aggrieved by one portion of the order passed by the Tribunal, which, according to the Revenue, was factually and legally incorrect and therefore, they moved a miscellaneous petition before the Tribunal and it was allowed by order dated 08.10.2018. The Tribunal is to hear the Revenue afresh on that issue. Hence, interest of justice would be met and interest of the Revenue also would be protected if the entire matter is remanded to the Tribunal for a fresh consideration. 9. For the above reasons, the above tax case appeals are allowed, the common im....
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....tomatic consequence to the treatment of the income earned from. operations of shopping mall M/s. Coromandal Plaza as business include thereby making eligible for related depreciation. From the above, we find the cause as reasonable and hence, we condone the delay and admit the appeal. ITA 462/Chny/2017 5. The only issue raised in Revenue's appeal is as regards to the order of CIT(A) directing the AO to verify the Memorandum of Association and main objects of the assessee company and accordingly assess the income from construction and sale of residential apartments of Victoria Towers under the head 'business income'. For this, Revenue has raised the following Ground Nos. 2.1 to 2.6:- 2.1 The learned CIT(A) erred in directing the AO to verify the Memorandum of Association and main objects of the appellant company and assess the income from construction and sale of Victoria Towers under the head business' when the learned CIT(A) ought to have directed the AO to verify the same under Rule 46A of the Income-tax Rules. 2.2 The ld. CIT(A) ought to have directed to AO either to consider the income as income from house property or income from busin....
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....in the case of Chennai Properties & Investments Ltd., [2015] 373 ITR 673 decided the issue and directed the AO to verify the activity of the company in consonance with its main objects and also verify the Memorandum of Association. The CIT(A) directed the AO vide para 4.3 as under:- "4.3 The matter is considered. The Hon'ble Supreme Court in its decision of M/s. Chennai Properties & Investments Limited (Supra) has held that if the Memorandum of Association of the assessee company was incorporated with the main objective to acquire and hold properties as well as make advances upon the security of land and buildings, etc. the rental income therefrom is to be assessed as income under the head income from business. In view the decision of the Hon'ble Supreme Court, the AO is directed to verify the Memorandum of Association and the main objects of the appellant company, and assess the income from construction and sale of Victoria Towers under the head 'business' if upon verification it is established that the activities of the company are in consonance with its main objects. Subject to this direction, this ground stands disposed. For statistical purpose, this gr....
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....tive amendment, the same would further fortify the plea of the assessee on the non-applicability of provisions relating to ALV to the unsold apartments kept by assessee as stock-in-trade during the assessment year under consideration i.e., 2012-13. Further, we are in agreement with the arguments of ld. Senior DR that the CIT(A) has no power to set aside the assessment but he has referred back the issue for limited purpose of verification of Memorandum of Association and Article of Association i.e., aims and objects of the assessee company. 11. With regard to the ground raised by Revenue on violation of Rule 46A of the Rules, we are of the view that these are vital documents and CIT(A) after admitting those and going through the same has held the income derived from unsold stock kept as stock- in-trade as 'business income'. We find no infirmity in directing the AO to verify these documents. Hence, these issues raised in regard to income assessed on account of residential apartment of unsold stock in the project of 'Victoria Towers', of the Revenue's appeal is dismissed. 12. Coming to the grounds raised by the assessee in its appeal which is connected to Gro....