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2012 (8) TMI 677 - AT - Income TaxOperational income received from lessee - business income OR house property ? - Held that:- The prime object of the assessee under the said agreement was to let out the portion of the said property to various occupants by giving them additional right of using the furniture and fixtures and other common facilities for which rent was being paid month by month in addition to the security free advance covering the entire cost of the said immovable property, thus the income derived from the said property is an income from property and should be assessed as such - There is nothing on record to suggest that the assessee has exploited the IT Complex as a business venture. The object in the Memorandum and Articles of Association of the assessee by itself cannot be an indicated to determine the nature and character of income. there is clear intention of the assessee to lease out the property for an initial period of 9 years and to extend the lease period further after expiry of the initial lease period, it cannot be said that the assessee has exploited the commercial asset temporarily. In view of the leasing out of the property for a long period the income has to be classified as income from house property. Therefore,no infirmity in the order of the lower authority - aginst assessee.
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