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2017 (11) TMI 563 - AT - Income TaxContribution received from the Shops - assessable under the head "Income from House Property" or " Income from business or profession" - Held that:- The assessee's main object as stated in its Memorandum of Association was to acquire on license or by purchase, lease, exchange, hire or otherwise lands and property of any tenure, or premises in any part of India and to license or sub-license or lease or sub-lease or let, such lands or property or premises or any part thereof, clearly spells out that the assessee's main business is to carry out systematic and regular activity in the nature of business of letting out property. We also note that section 27(iiib) read with section 269UA(f) of the Act, is not applicable in the instant case as the agreement is only for use of property and not for the transfer of the same. Since the company is neither the owner nor the deemed owner in terms of section 27(iiib) of the Act, therefore the "Contribution from Shops" cannot be assessed under the head "Income from house property. The said issue is squarely covered by the Hon'ble Supreme Court judgment in Chennai Properties & Investments Ltd.'s case (2015 (5) TMI 46 - SUPREME COURT) wherein it had been held that in case, letting of the properties was in fact the business of the assessee, then the assessee's income disclosing the same under the head income from business has to be upheld and it cannot be treated as income from house property. - Decided in favour of assessee.
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