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2014 (9) TMI 623 - AT - Income TaxBusiness income treated as income from house property – Held that:- The assessee has declared the receipts on account of business arrangement fee under the head "business" and computed on the basis of percentage - The Business Arrangement Agreement dated 23.08.2002 entitled the assessee to receive a fixed consideration per annum with an increase every year @ 15% and thereafter every three years the fee shall be increased with mutual consent - The AO in earlier years and subsequent years has accepted the position as it is and treated the receipts declared as business income - the mere fact of attachment of income to any immovable property cannot be the sole factor for assessment of such income as income from house property - It is necessary to find out the primary object of assessee while exploiting the property - If it is found that the main intention is for letting out the property or any portion thereof the same must be considered as rental income or income from house property - the main intent ion is to exploit the immovable property by way of complex commercial activities, in that event it must be held as business income - it was a case of rental or commercial utilization of properties, which has been accepted, there is no reason to uphold this deviation – the order of the CIT(A) – Decided against revenue.
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