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2015 (4) TMI 869 - HC - Income TaxBifurcation of income - Rental income - Tribunal treating 60% of his income as 'income from business' and 40% of the rental income as 'income from house property' - claim of the assessee is that the entire income is to be treated as income from business - Held that:- What is to be seen is; 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 and 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 on 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. In the facts of this case, it is clear that the entire construction and the interiors are all done with the sole intention of carrying on the business and therefore, the claimant is entitled to treat the entire income as income from business. Merely because the document is styled as lease deed and building is involved. Therefore, the authorities were not justified in bifurcating the rental income and the business income. The rental income shall be treated as income from the business, ie., profits and gains from the business under Section 28 of the Income Tax Act. - Decided in favour of assessee.
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