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2014 (9) TMI 1103 - HC - Income TaxRental income earned from letting out building - “Income from Business” OR “Income from House Property” - Held that:- This Court had an occasion to consider the said question of law in the case of COMMISSIONER OF INCOME TAX-III vs. VELANKANI INFORMATION SYSTEMS (P.) LTD [2013 (8) TMI 113 - KARNATAKA HIGH COURT] held that firstly what is the intention behind the lease and secondly what are the facilities given along with the buildings and documents executed in respect of each of them is to be seen. Thirdly it is to be found out whether it is inseparable or not. If they are inseparable and the intention is to carry on the business of letting out the commercial property and carrying at complex commercial activity and getting rental income therefrom, then such a rental income falls under the heading of profits and gains of business or profession. In fact, any other interpretation would defeat the very object of introduction of Section 80-IA as well as the scheme which is framed by the Government for development of industrial parks in the country. Thus the rental income earned by the assessee should be brought under the head of “Income from Business” and not under the head “Income from House Property”. - Decided against revenue
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