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2012 (9) TMI 727 - ITAT INDOREIncome form lease rent - business income OR income from other sources - Held that:- Considering the main objects of assessee it is to develop residential and commercial complexes for the public at large and the ground rent was charged from immovable properties which were either sold or given on lease to various persons. Such land on which such development or construction activities were done by the assessee were made available by the Government on lease basis and such properties were also either sold on lease basis or leased out on rent fixed by the Government, therefore, such lease rent is directly connected with the objectives of the assessee, consequently, the character of such lease rent is business income, therefore, it was not income from other sources. Income from rent/rental - CIT(A)'s direction to AO that the income from rent/rental is to be taxed as income from house property - Held that:- the amount of Rs. 41,04,721/- was received by the assessee from letting out of buildings of the assessee which was claimed as such earning of such rental income is not the regular business of the assessee. Our view is fortified by the ratio of the decision in the case of Potdar Cements Private Limited and others; 226 ITR 625 and CIT vs. Dhoompalam Commercial Complex Industry Pvt. Ltd [2003 (1) TMI 52 - KARNATAKA HIGH COURT] therefore, the learned CIT(A) rightly directed to treat such income as income from house property and not business income. Interest from deposits in the bank - Held that:- As the surplus money deposited with the bank in itself is not sufficient to give it the character of business income. This interest income is the additional source to the assessee and is not “directly linked” with the business of the assessee. Surplus funds were deposited, therefore, such interest income is income from other sources. Interest on delayed payment- Held that:- The interest on delayed payments is essentially connected with the main objects of the assessee which is obtained out of housing/commercial units/industrial units, as the case may be, and is not an independent source of income. It is also connected with the business activities of the assessee, therefore, the true character of such receipt is also part of business income.
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