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2015 (10) TMI 400 - HC - Income TaxNature of Sum receive from TELCO - whether taxable under the head 'income from business' and not under the head 'income from house property'? - Assessee was engaged in the business of procuring Mercedes trucks from TELCO on behalf of its customers - Held that:- In the present case, it is plain from the agreement entered into between the Assessee and TELCO that it is the business of the Assessee as a whole that has been exploited by TELCO and not merely the business premises of the Assessee. In other words, the payment received by the Assessee from TELCO pursuant to the agreement in question is incapable of being segregated into income derived from the exploitation of the premises by TELCO and the income derived from exploitation of the commercial assets of the Assessee which are integral to the running of the business. Since the AO had not made effort to segregate such income, which in any event does not seem to be capable of being segregated, it is plain to the Court that what was being received by the Assessee from TELCO in terms of the agreement was a payment for commercial exploitation by TELCO and of the business assets of the Assessee not confined to 'house property'. It would, therefore, be erroneous to treat the entire income received from TELCO as income from house property as has been sought to be done by the AO. There is no factual basis for coming to any other conclusion than the one arrived at by the CIT (A) which has been affirmed by the ITAT. CIT (A) and the ITAT were justified in treating the income received by the Assessee, pursuant to the agreement entered between it and TELCO, as 'business income' and not as 'income from house property'. - Decided in favour of assessee.
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