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2014 (5) TMI 853 - HC - Income TaxTreatment of rental income – Letting put of building with other amenities – Business income OR income from house property – Held that:- Following COMMISSIONER OF INCOME TAX-III v/s VELANKANI INFORMATION SYSTEMS (P) LTD. [2013 (8) TMI 113 - KARNATAKA HIGH COURT] - 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. Decision of tribunal holding that the lease rent received by the assessee from letting out buildings along with other amenities in a Software Technology Park is chargeable to tax under the head ‘income from business’ is correct - Decided against Revenue.
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