TMI Blog2017 (7) TMI 1070X X X X Extracts X X X X X X X X Extracts X X X X ..... of business of letting out property. Therefore, the entire income which accrued and was assessed was from letting out of these properties. The assessee showed the rental income received as income from business in its return and we uphold the said claim of the assessee in the facts and circumstances and the law and on the ratio-decidendi laid down by the Hon’ble Supreme Court in Chennai Properties & Investment Ltd. (2015 (5) TMI 46 - SUPREME COURT) and Royala Corporation Pvt. Ltd. (2016 (8) TMI 522 - SUPREME COURT). Therefore, we set aside the order of the Ld. CIT(A) and allow the claim of the assessee and hold that the income from contribution received from the shop has to be assessed as business income. - I.T.A. No. 1640/Kol/2014 - - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtain area earmarked for shopping centre) in the company s Oberoi Hotel in Mumbai. In terms of this agreement, after acquiring the license in the shopping area the assessee company gave sublicense to various parties who were interested in setting up shops there with the condition that the shopkeepers had to subscribe to a specific number of shares of the assessee company apart from payment of monthly charges (termed as contribution from shops). Since inception, the contribution from shops has been assessed as business income. However, in the AY 2005-06, the AO had changed the head of such income from business Income to income from house property which order of the AO has been confirmed by the Tribunal C Bench, Kolkata vide its order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Vs. CIT (2015) 373 ITR 673 has categorically held that in case, letting of the properties was in fact the business of the assessee, then the assessee disclosing the same under the head income from business has to be upheld and it cannot be treated as income from house property. This proposition of law has been reiterated by the Hon ble Supreme Court in Royala Corporation Pvt. Ltd. Vs. ACIT (2016) 386 ITR 500 (SC). Taking into consideration the ratio laid down by the Hon ble Supreme Court, the coordinate Bench of this Tribunal B Bench, Kolkata in the case of the sister concern of the assessee i.e. Bombay Plaza Pvt. Ltd. Vs. ACIT, ITA No. 1641 1203/Kol/2014 for AYs 2006-07 and 2007-08 was pleased to uphold the assessee s claim that the i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see s main object as stated in its Memorandum of Association was to acquire on license or by purchase, lease, exchange, hire or otherwise lands and property of any tenure, or premises in any part of India and to license or sub-license or lease or sub-lease or let, such lands or property or premises or any part thereof, clearly spells out that the assessee s main business is to carry out systematic and regular activity in the nature of business of letting out property. Therefore, the entire income which accrued and was assessed was from letting out of these properties. The assessee showed the rental income received as income from business in its return and we uphold the said claim of the assessee in the facts and circumstances and the law an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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