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2022 (5) TMI 1217 - AT - Income TaxCorrect head of income - Characterization of income - rental income as 'business income' or 'income from house property' - HELD THAT:- Assessee is a company engaged in the business of real estate development. According to Memorandum of Association, main object of the assessee company is to acquire properties such as land and building lease hold or free hold and also to earn rental income from these properties and to develop them. This is contained in main objects of the company clause A (1). Further, in B (5) also the assessee is having incidental and ancillary object of renting out of the properties. Therefore, there is no doubt that assessee has object of renting out of the properties as per its object in Memorandum of Association. Honourable Bombay High court in principal commissioner of income tax v. City centre mall nashik pvt. Ltd.[2020 (1) TMI 872 - BOMBAY HIGH COURT] has also held that when main objects of assessee, over and above real estate development as main clause has renting of property there in and assessee is also providing certain other services as mentioned in Annexure B of leave and License agreement, income derived is to be taxed as Business Income and not income from house property. Also see M/S CHENNAI PROPERTIES & INVESTMENTS LTD VERSUS THE COMMISSIONER OF INCOME TAX [2015 (5) TMI 46 - SUPREME COURT] Therefore looking at the facts of the case and the decision of honorable Supreme Court and Honorable Bombay High court, we hold that income from property earned by the assessee is chargeable to tax as business income and not as income from house property. Accordingly, we direct the learned Assessing Officer to tax the above income under the head of business income and not as income from house property - Appeal of assessee allowed.
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