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2016 (11) TMI 1598 - AT - Income TaxCorrect head of income - Leave and license charges and service charge - Addition under the head income from house property or income from business - assessee entered into leave and license agreement and service agreement separately in respect of leasing out of industrial premises and for providing services - Held that:- The assessee company has given its two industrial buildings i.e. Indiplex-I and Indiplex-II on lease and received license fee and service charges which was shown as business income. We find from the objects of the company as mentioned in the Memorandum of Association, the main objects of the Company was to acquire properties and construct and hold the property. During this process assessee earned these leave and license charges as well as service charges. We find that this issue is covered in favour of assessee and against Revenue by the decision of Hon’ble Supreme Court in the case of Chennai Properties and Investments Ltd. Vs. CIT [2015 (5) TMI 46 - SUPREME COURT] the circumstances of the present case from which we arrive at irresistible conclusion that in this case, letting of the properties is in fact is the business of the assessee. The assessee therefore, rightly disclosed the income under the Head Income from Business. It cannot be treated as 'income from the house property' - Decided in favour of assessee.
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