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2017 (5) TMI 974 - AT - Income TaxLeased rental received - Income from house property or business income - Held that:- We find that through lease deed, the assessee has leased out the entire property to M/s. Prathibha Housing and Finance (Pvt) Ltd., vide lease deed dated 31.01.2011. Through this lease deed, the possession of the property was given to the lessee and the lessee has exclusive right over the entire property for its use and also to sublease any portion of premises to the tenant for a period within the lease agreement period. Day to day maintenance of leased premises shall also be the responsibility of the lessee. We have carefully perused the other terms of the lease deed and we find that the assessee has simply leased out its property to M/s. Prathibha Housing and Finance (Pvt) Ltd. During the first year of lease he has agreed to receive the 60% profit of the business as annual rental income but subsequently the annual rent has been prescribed in clause 3 of the lease deed. Therefore, by any stretch of imagination it cannot be said that the assessee was doing business with M/s. Prathibha Housing and Finance (Pvt) Ltd., on profit sharing basis. It was simply a case of leasing out of property to M/s. Prathibha Housing and Finance (Pvt) Ltd. Therefore the leased rent received by the assessee is chargeable to tax as income from house property. - Decided against assessee.
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