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2013 (2) TMI 557 - AT - Income TaxHead of Income - Whether subleasing of land is business activity of the assessee company - held that:- as the assessee company was not having any land of its own, therefore it could only sublease the land which has been made available to the assessee-company by MIDC on lease basis. - any income derived from such sublease of land can only be taxed under the head profit and gains of business or profession. Decision of of the Hon’ble High Court of Andhra Pradesh in the case of Sponge Iron India Ltd. (1992 (10) TMI 67 - ANDHRA PRADESH HIGH COURT) distinguished. It has been accepted by the Revenue that business was set up during financial year 2004-05 relevant to A.Y. 2005-06 in the assessment made u/s. 143(3) of the Act by the JCIT who allowed the benefit of carry forward of business loss and depreciation allowance to the next assessment year i.e. year under consideration. Therefore, on these facts, it can be safely concluded that the business of the assessee has been started in F.Y. 2004-05 relevant to A.Y. 2005-06. - Taxable as business income - Decided in favor of assessee.
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