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2016 (5) TMI 63 - AT - Income TaxIncomes received from leasing out of hotels - whether are to be taxed under the head "Income from house property"? - Held that:- Deciding factor is not the ownership of land or lease but nature of activity of the assessee and nature of operation in relation to them. In the present case, the assessee is a company, and it is not involved in any activity other than leasing out of these hotels. The fact that the said activity is mentioned under other objects in the memorandum of association, of the company and not in the main objects, is immaterial to decide the issue in question. In a judgment of the hon'ble jurisdictional High Court in the case of Capital Foundry and Engineering Works v. CIT [1981 (11) TMI 42 - PUNJAB AND HARYANA High Court ] very clearly held that once the profits or gains are made from the exploitation of a commercial asset, then whether the assessee carries on business himself or it had been run by another person as a lessee, makes no difference. In the present case, similar is the situation. The judgment in the case of Dal Chand and Sons v. CIT [1967 (12) TMI 7 - PUNJAB AND HARYANA High Court] was later followed by the hon'ble jurisdictional Punjab and Haryana High Court in the case of Nauharchand Chananram v. CIT [1970 (10) TMI 12 - PUNJAB AND HARYANA High Court ] (P&H) also. Thus we hold that the lease rental received by the assessee is to be taxed under the head "Income from business" - Decided in favour of assessee
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