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TMI Blog2017 (1) TMI 737X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. The effective ground of appeal is about allowing the income on account of licence fees (Rs. 1. 08 crores) and amenities(Rs. 19. 30 lakhs) as business income as against the income from house property income. During the assessment proceedings, the AO found that the assessee had let out its property to Citigroup Information Technology O&S Ltd. (Citigroup)as per the Leave and license agreement dated 29/06/2006, the licence fee for the year under consideration was Rs. 12. 01 lakhs per month effective from 01/07/2006, that the assessee had also taken interest-free deposit of Rs. 72. 07 lakhs, that during the earlier year the assessee had received total rent of Rs. 1. 27 crores, that it had treated the rent under the head business income and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the land/building/plants/machinery/factories, that in pursuance of the objectives the assessee had purchased a commercial property after obtaining loan, it decided to exploit the commercial property on Leave and license basis along with various amenities, that it was purely a commercial activity and was done in the course of business, that it had entered into two agreements with Citigroup, that the Leave and license agreement entered into with the tenant was not a Leave and license agreement for earning income from investments, that the assessee had agreed to provide services to the licensee, that the nature of asset which was given on leave and license was hundred percent commercial asset. The assessee relied upon certain case laws and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the rental income received by it was offered under the head business income, that the AO was of the opinion that Leave and license fees and charges received against the amenities were to be taxed under the head income from house property. It is a fact that the main object of the assessee, as evident from the memorandum of incorporation, was to deal in properties as well as to let them out. It had purchased a property, but could not sell it. Later on, it converted the property into commercial asset and provided various amenities to the tenant. We find that the Hon'ble Bombay High Court in the case of CIT vs. National Storage (P. ) Ltd. (48 ITR 577), while laying down the principles to be followed in determining the particular head under ..... X X X X Extracts X X X X X X X X Extracts X X X X
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