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2015 (8) TMI 886 - AT - Income TaxIncome/loss from letting out of multiplex/shopping mall and cinema theatre along with amenities - “Income from house property’ or “business income’ - assessee is a partnership firm constituted by the partners for carrying out the business activity - Held that:- As decided in Chennai Properties & Investment Ltd. case [2015 (5) TMI 46 - SUPREME COURT] relying on earlier Judgment in the case of Karanpura Development Co. Ltd. Vs. CIT [1961 (8) TMI 7 - SUPREME Court] held where there is a letting out of premises and collection of rents the assessment on property basis may be correct but not so, where the letting or sub-letting is part of a trading operation. The diving line is difficult to find; but in the case of a company with its professed objects and the manner of its activities and the nature of its dealings with its property, it is possible to say on which side the operations fall and to what head the income is to be assigned. The facts of the case of the assessee before us are on better footings. The assessee’s objects are not in respect of letting of any particular property, but it has the main objects of acquiring, constructing, operating and maintaining of the multiplexes, business center, marriage halls etc. The very object is the commercially exploitation of the properties. Besides that the assessee is also providing hosts of amenities and facilities, as discussed above, which amounts to composite business activity. Thus the issue is squarely covered in favour of the assessee by the above noted decisions of the Hon’ble Supreme Court. We therefore hold that the income/loss from the multiplex is liable to be assessed as “business income/loss" and not as "income from house property". The assessee consequently is also entitled to the claim of deductions in respect of expenditure incurred and depreciation on assets etc. in relation to such income. - Decided in favour of assessee.
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