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2021 (9) TMI 967 - AT - Income TaxCorrect head of income - letting out of the land independently which is part of the business asset of the assessee - business income or income from house property - HELD THAT:- Assessee was using the bungalow and land together for the film production as part of business assets. Since the film production is stopped, it has separated the bungalow and vacant land. It uses the bungalow for storage for its own purpose and leases the vacant land not on the regular basis but based on the requirement of the other production houses. It leases only the vacant land which it was earlier utilized for its own business. Just because, it let out only the vacant land the type of assets will not change - it will remain as business assets. Since, it is part of total asset of the assessee. The assessee claims depreciation only on bungalow and not on vacant land. When the assessee let out not on regular but based on the requirement of the industry, it can only be treated as income from letting out business assets. Moreover, the assessee demonstrated that the land can be separated and used to earn independent income. We notice that the vacant land cannot reasonably expected let from year to year basis. Therefore, the annual value cannot be reasonably estimated or expected. The vacant land is continuing to be used or usable for film production. The same land when assessee in case, decided to continue with the film production, will be used for the assessee’s business as business asset. Therefore, temporary let out of the vacant land and only be part of business income. Therefore, in the given case the land is separable from the bungalow to let out independently, thus the land can be treated as separate asset and this letting out of the land independently cannot be part of the income from these property. With the above observations, in our considered view, the letting out of the land independently which is part of the business asset of the assessee can be treated as income from business only. - Decided against assessee.
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