Raipur bench Of Income Tax Appellate Tribunal (ITAT) has recently held that warehousing charges are taxable as business income.
Assessee Chhattisgarh State Warehousing Corporation is a state government company engaged in the business of warehousing. After filing the return it was selected for scrutiny assessment. During the assessment proceedings Assessing officer found that the company derived income from rendering various services to the persons who store their goods in warehouses and the rate was fixed as per the directions of the Central WareHousing Corporation. But the assessee assessed the income under the head of “Income from business instead of Income from house property. Thereafter the assessing officer recharacterizing the head of income under which the warehousing receipts were to be brought to tax assessed the income of the assessee at Rs. 68,09,19,820/-.
Abhishek Mahawar, counsel for assessee submit that the issue is already covered by the assessee’s own case before the tribunal in the assessment year 2003-2004 and 2008-2009 and the tribunal exclusively conclude that the warehousing charges were liable to be brought to tax under the head “Income from business”.
P.K Mishra, counsel for the revenue, upheld the view of the assessing officer and observed that principles of res-judicata were not applicable to income-tax proceedings.
After considering the contentions of the both parties the division bench of ITAT comprising Ravish Sood (Judicial Member) and G D Padmahshali,, (Accountant Member) Observed that warehousing charges received by the assessee had rightly been offered by it to tax as its income from business.
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