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2014 (6) TMI 803 - AT - Income TaxTreatment of income earned from sub-letting of business service center – Income from other sources or business income – Held that:- the fact that the assessee running the business centre by exploiting the property is not merely an activity of letting out the property and the fact that the assessee has been showing the rent received from letting out the business centre under the head business income continuously since 1984, we are of the considered view that the authorities below are not justified in treating the impugned receipts under the head income from other sources. - AO directed to treat the impugned receipts in both the assessment years under the head business income as claimed by the assessee. - Decided in favor of assessee. The details of expenditure incurred by the assessee reveals that the expenses are for keeping the premises alive for earning the income from legitimate business of activity of renting - the legal fees expense claimed by the assessee is for the purpose of safeguarding the company’s tenanted properties - the income received from the business centre has to be treated as business income in pursuance of the adjudication and the fact that the expenditures have nexus with the business income, the expenditures claimed by the assessee have also to be allowed as business expenditure – the AO is directed to allow the expenditure claimed by the assessee – Decided in favour of Assessee.
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