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2014 (2) TMI 1227 - ITAT MUMBAIRent receipts - income from business or income from house property - inseparable project - Held that:- Where the assessee is engaged in the business of commercial complex and commercial exploitation of the property, the income earned from such activities constitutes "business income" of the assessee. The separate agreement made providing services and amenities clearly shows the indication to render commercial services to the tenants. The agreement for hiring and agreement for the services and the facilities were inextricably linked with similar tenures. Giving space with services and facilities which were varied and wide and such activities together would definitely constitute an organized structure for making profits, and would necessarily constitute a business and the relationship between the parties as distinguished from that merely of a landlord and his tenant. Occupation of space was inseparable from the provision of services and amenities as held by the ITAT in the case of Gesco Corp (P) Ltd (2009 (4) TMI 549 - ITAT MUMBAI ). Further, providing amenities like electricity, telephone, watch and ward etc are the services rendered by the assessee result of its activities carried on continuously in an organized manner with a set purpose and with a view to earn profit. Hence, all the activities which are subject matters of both the agreements entered into by the asssessee for rendering of services and letting of the office space are in the nature of commercial activities and income derived by assessee from shopping malls / business centre was assessable as "business income" and not as "income from house property" as held by the ITAT, Calcutta in the case of PFH Mall & Retail Management Ltd ( 2007 (5) TMI 258 - ITAT CALCUTTA-A ) and the same view was taken by the ITAT Cuttack also in the case of Narayah Market Complex (2012 (4) TMI 467 - ITAT CUTTACK). Thus we are of the opinion that the both the rental and service charges are inseparable and they should be treated as "business income" and not as "income from the house property‟ as held by the AO. Therefore, the decision of the CIT (A) in allowing the assessee‟s claim of depreciation on building by holding that the rental income was "income from business" is fair and reasonable and it does not call for any interference. - Decided against revenue
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