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2016 (3) TMI 409 - AT - Income TaxIncome from license fee arising from leave and license agreement - “income from house property” OR ‘Income from other sources’ - Held that:- The assessee company acquired the plot of land for a long period i.e. 95 years from the MIDC and the assessee company is the deemed owner of this plot by virtue of section 27(iiib) of the Act read with Section 269UA(f) of the Act. The assessee company is the owner of the factory building and it is also a deemed owner of the land and the licensee fee income received has to be assessed under the head ‘income from house property’ and not under the head ‘income from other sources’. With respect to the lifts and electrical installations in the factory building given on leave and license along with the premises consisting of land and building , the lift and electrical installations are amenities , which are necessary for the use and enjoyment of the building and hence part of the building and cannot be separately assessed and charged to tax under the head ‘Income from other sources’ rather the same is also chargeable to tax under the head ‘Income from House Property’. In our considered view, the CIT(A) has rightly held that income from license fee arising from leave and license agreement entered into by the assessee company with Omnitech Infosolutions Limited dated 10.12.2007 is chargeable to tax as income under the head “income from house property” and not under the head ‘Income from other sources’ - Decided in favour of assessee
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