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TMI Blog2015 (4) TMI 869X X X X Extracts X X X X X X X X Extracts X X X X ..... business. 2. Assessee is a private limited company carrying on the business of establishing facilities as are available in an information technology park and providing such facility to IT industry and similar commercial facilities to hotels, commercial complexes in an integrated manner, so that the user from whom the assessee derives income can walk in and plug in and commence business operations straight away without doing anything more. In effect, it provides readymade, fully operational infrastructure facilities, so that the business entrepreneur with the necessary expertise can straight away without ado operate its business. 3. The document executed in this regard was styled as a deed of lease. Therefore, the Assessing Authority treat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deration before this Court in ITA No.73/2014 which was decided on 01.04.2014, wherein following the judgment of this Court in the case of CIT v. Velankani Information Systems (P.) Ltd. reported in [2013] 218 Taxman 88 (Karnataka), this Court observed as under: "26.... ... ... If the intention is to exploit commercial property by putting up construction and letting out for the purpose of getting rental income, then notwithstanding the fact that the furniture and fittings are provided to the lessee, the income from the building fall under the head 'income from house property'. But if the assessee is in the business of taking land, putting up commercial buildings thereon and letting out such buildings with all furniture as his profess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the business and therefore, the claimant is entitled to treat the entire income as income from business. Merely because the document is styled as lease deed and building is involved. Therefore, the authorities were not justified in bifurcating the rental income and the business income. 9. In that view of the matter, the impugned orders passed by the authorities require to be set-aside. Accordingly, the substantial questions of law are answered in favour of the assessee and against the revenue and hence, we pass the following; ORDER (i) Appeal is allowed. (ii) Impugned orders passed by the Appellate Authorities are hereby set-aside. The rental income shall be treated as income from the business, ie., profits and gains from the busines ..... X X X X Extracts X X X X X X X X Extracts X X X X
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