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2011 (8) TMI 488 - HC - Income TaxBusiness income or Income from house property - Income from let out property - The AO, assessed the income from property under the head 'Income from house property' - Held that:- If we apply the tests laid down by the Supreme Court in Universal Plast Ltd (1999 (3) TMI 15 - SUPREME Court), to the facts of the present case, we find that all the assets of the business were not rented out by the appellant company. - In the interest of the company, it decided to let out one of its properties, to the City Bank, by way of exploitation of business assets, for making profit. The assets were let out, while carrying out other business activities. There was nothing on record, to show that the appellant had sold away the properties or abandoned its business activities. In the circumstances, in order to exploit business assets, as a prudent business decision, the appellant took interest free loan from the City Bank, rented out, one of its properties to it, and shifted its Regional Office. In this commercial venture, the appellant received a higher income regularly from its commercial assets. - while deciding in favor of assessee, matter remanded back to tribunal to decide the issue in accordance with law.
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