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2021 (4) TMI 294 - AT - Income TaxLease income from property let out - to be assessed as business income or income from house property - HELD THAT:- In the original return of income filed by the assessee, it had offered it as business income. During the scrutiny proceedings, the assessee filed revised return of income wherein claimed the rent received as "income from house property" and claimed depreciation as per the Act for the whole year. On careful reading of the agreements, we find that the assets leased out to the Thumbay Hospital India Pvt. Ltd. were using as commercial assets before letting it out by the assessee. Therefore, subsequently, the rent receipts on these commercial assets is to be treated as business income under Chapter - IV-D under the head "profits and gains of business or profession" but not under Chapter VI-C under the head "income from house property" as claimed by the assessee. As decided on M/S ULTRAVISION ASSOCIATES AND VICE-VERSA [2016 (3) TMI 1109 - ITAT RAJKOT] there was a dispute between the assessee and the AO, as the AO treated the income of the assessee as "income from house property" whereas the assessee had offered it as "business income". On appeal, before the ITAT, the coordinate bench has decided the issue in favour of the assessee that letting out of commercial assets is to be treated as business income. We uphold the order of the CIT(A) in treating the rental receipts from the leased out commercial assets of the assessee as business income and dismiss the grounds raised by the assessee on this issue. The authorities below have rightly taxed the rental income as business income. - Decided against assessee.
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