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2022 (2) TMI 516 - ITAT INDORECorrect head of Income - income from warehouse - income from house property or business income - HELD THAT:- As perused the agreement for letting out the warehouse which is an agreement entered into between M.P. Warehousing and Logistic Corporation and the assessee. Ongoing through clause (3) of this agreement we find that the assessee is required to maintain the 24 hours security arrangement, cleaning and fumigation of the premises on regular intervals provide labour on daily wages and also to ensure the compliance of labour Rules and is also responsible to compensate the labourers towards any liability under labour laws arising at the warehouse. Agreement also shows that the assessee is required to provide the equipment for storage of goods. We find merit in the contention of assessee that the alleged gross receipts are not in the nature of rental income from letting out the property but are business receipts received for carrying out warehouse operations as per the terms of the agreement. We set aside the finding of Ld. CIT(A) and hold that both lower authorities erred in treating the alleged receipts as rental income. Finding of Ld. CIT(A) is reversed and the net profit shown from operations of warehouse is directed to be treated as business income. Thus, the addition is deleted. Ground no. 1 of the assessee's appeal is allowed.
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