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2013 (12) TMI 744 - AT - Income TaxTreatment of rental income - Property leased out as 'income from business' instead of treating the same as 'income from house property' – Held that:- The assessee constructed a warehouse/godown for specific purpose and let out to the M/s. Hindustan Lever Ltd., and the income derived is to be treated as income from business only - Following ITO vs. Rasiklal & Co. (P) Ltd. [2008 (8) TMI 802 - ITAT MUMBAI] – Assessee not merely letting out its premises for warehousing but being also under obligation to provide adequate security to the material stored apart from receiving and delivering stock, taking physical inventory at regular intervals, to do loading and unloading and stock taking in addition to ensuring proper spray of pesticides in the godown, it was doing a complex commercial activity, hence receipts were taxable as business income and not income from house property, more so when receipts were assessed as business income in the past and there was no change in factual or legal position – Decided against Revenue. Income from Business OR from other Sources - Income received on let out of furniture and fixtures and generator assessed as 'Income from other sources', to be assessed as business income – Held that:- The assessee is carrying on the business of letting out warehouse/godown for commercial purposes - The furniture & fixtures and generator are attached to that business of the assessee - This leasing of assets cannot be isolated from the assessee's business so as to treat the income derived from furniture & fixtures and generator as income from other source - the CIT(A) is justified in treated the income from letting out of furniture & fixtures and generator as income from business and allowing depreciation claim of the assessee – Decided against Revenue.
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