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2014 (11) TMI 481 - ITAT PUNETaxability of 'license fee' - Income derived from license fee from letting out a commercial property – Income from house property or business income - Revenue was of the view that the income needs to be assessable as 'income from house property' – Held that:- Merely because an income arises from exploitation of immovable property, it would not ipso facto be assessable under the head 'income from house property'- What is required to be appreciated is the peculiar facts and circumstances of each case to decide whether a particular rental income is assessable under the head 'house property' or not – relying upon CIT vs. Shambhu Investment (P.) Ltd. [2001 (3) TMI 77 - CALCUTTA High Court] - if the main intention of the assessee is to let out the property, the income must be considered as rental income assessable under the head 'income from house property - the assessee was deriving rental income by merely letting out the property which was assessable under the head 'income from house property'. It is not a case where the license fee has been earned from merely letting out of office space, but has been earned as a result of undertaking composite activities, comprising of leasing of office space and providing services of cafeteria/pantry, conference rooms and equipments such as LCD projectors, PA system etc., use of computer terminals, electrical fittings, UPS, network services and net-switch charges, etc. - The providing of such services along with the office space cannot be regarded as exploitation of the immovable property for earning rentals but it is a case where the commercial property has been exploited by undertaking complex commercial activities and therefore such income has to be held assessable as 'business income' - CIT(A) made no mistake in holding that the impugned 'license fee' received from the users of the office infrastructure facilities in 'IndiaCo iCenter Plaza' was assessable as 'business income' and not under the head 'income from house property' - no material has been lead by the Revenue to show any change of facts during the year – the order of the CIT(A) is upheld – Decided against revenue.
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