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2017 (7) TMI 1070 - AT - Income TaxIncome derived from letting out of property - business income or income from house property - Held that:- In the instant case, we take note of the fact that the assessee’s main object as stated in its Memorandum of Association was to acquire on license or by purchase, lease, exchange, hire or otherwise lands and property of any tenure, or premises in any part of India and to license or sub-license or lease or sub-lease or let, such lands or property or premises or any part thereof, clearly spells out that the assessee’s main business is to carry out systematic and regular activity in the nature of business of letting out property. Therefore, the entire income which accrued and was assessed was from letting out of these properties. The assessee showed the rental income received as income from business in its return and we uphold the said claim of the assessee in the facts and circumstances and the law and on the ratio-decidendi laid down by the Hon’ble Supreme Court in Chennai Properties & Investment Ltd. (2015 (5) TMI 46 - SUPREME COURT) and Royala Corporation Pvt. Ltd. (2016 (8) TMI 522 - SUPREME COURT). Therefore, we set aside the order of the Ld. CIT(A) and allow the claim of the assessee and hold that the income from contribution received from the shop has to be assessed as business income.
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