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2017 (5) TMI 1102 - AT - Income TaxRental income received from property - business income or income from house property - Held that:- By a catena of decisions, courts, time and again, have held that where subject matter that is let out or given on licence is not a bare tenement but is a complex one like the one in present facts and circumstances, income derived therefrom which is not separable as income from letting out building and “income letting out from furniture, plant and machinery”, etc., such composite income shall not be covered by income from house property. In the present case rental income received from lease of building is not derived either wholly or even substantially from the ownership of the property. The income is not derived from mere letting of a tenement but income is derived from a complex of letting substantial part of which is other than bare tenement. It is further observed from bare reading of agreements that arrangement in the present case, is in the course of and as a part of business of company and enterprise which it has entered upon is of providing special facilities. Respectfully following decision of Hon’ble Supreme Court in the case of Shambhu Investment Pvt. Ltd vs CIT (2003 (1) TMI 99 - SUPREME Court) and discussions herein above, we are of considered opinion that rental income earned by assessee from lease of building would be taxable under the head “income from business and profession”. Ld. AO is directed to grant depreciation on building while computing income from business as per law. - Decided against assessee.
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