TMI Blog2017 (1) TMI 737X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. Assessee had provided certain amenities and facilities to the tenants. It is a case of exploiting the asset commercially and not the case of mere letting it out. Therefore, in our opinion, the order of the FAA does not suffer from any legal infirmity. In our opinion, facts of JST Reality (2015 (2) TMI 397 - ITAT MUMBAI ) are distinguishable from the facts of the case under appeal. Considering the peculiar facts and circumstances of the case, we decide the effective ground of appeal against the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the assessee disclosed net loss of ₹ 1. 05 crores as business loss. He directed the assessee to explain as to why the income from the property should not be charged to tax under section 22 of the Act under the head income from house property . After considering the submission of the assessee, he referred to the cases of SG Mercantile Corporation Mercantile Private Ltd. (83 ITR 700) Chennai Properties (266 ITR 685). He held that the assessee was incorporated on 27. 3. 2006, that it had taken a loan of ₹ 10. 34 crores to acquire the property, that the claim of the assessee that it utilised its own business funds for purchasing the property was factually incorrect, that it had claimed that property was acquired with an intenti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... After considering the assessment order and submission of the assessee, the FAA held that the company was incorporated in March, 2006 with the main object of carrying on business of selling, reselling, letting out etc. , that it had purchased the commercial property, that the unit had been used only for a specific business purpose of information and information technology enabled services, it had tried to develop its business but due to volatile market it could not start business activities, that it decided to exploit the commercial property on Leave and license basis along with other amenities, that the nature of asset was commercial. He referred to the cases of Krishna Land Developers Private Ltd. (ITA/1057/Mum/2010), PFH Mall and Retail ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot from the bare letting of the tenement or from the letting accompanied by incidental services or facilities, but the subject hired out is a complex one and the income obtained is not so much because of the bare letting of the tenement but because of the facilities and services rendered, the operations involved in such letting of the property may be of the nature of business or trading operations and the income derived may be of the nature of business or trading operations and the income derived may be income not from exercise of property rights properly so-called so as to fall under section 9 but income from operations of a trading nature falling under section 10 of the Act; In the case under consideration the assessee had provided ..... X X X X Extracts X X X X X X X X Extracts X X X X
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