TMI Blog2016 (11) TMI 1598X X X X Extracts X X X X X X X X Extracts X X X X ..... ny was to acquire properties and construct and hold the property. During this process assessee earned these leave and license charges as well as service charges. We find that this issue is covered in favour of assessee and against Revenue by the decision of Hon’ble Supreme Court in the case of Chennai Properties and Investments Ltd. Vs. CIT [2015 (5) TMI 46 - SUPREME COURT] the circumstances of the present case from which we arrive at irresistible conclusion that in this case, letting of the properties is in fact is the business of the assessee. The assessee therefore, rightly disclosed the income under the Head Income from Business. It cannot be treated as 'income from the house property' - Decided in favour of assessee. - ITA No.261 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vestment Ltd. 3. We have heard rival contentions and gone through the facts and circumstances of the case. We find that the assessee entered into leave and license agreement and service agreement separately in respect of leasing out of industrial premises and for providing services. The assessee company has given its two industrial buildings i.e. Indiplex-I and Indiplex-II on lease and received license fee of ₹ 25, 82,016/- and service charges of ₹ 21, 24,766/- , which was shown as business income. We find from the objects of the company as mentioned in the Memorandum of Association, the main objects of the Company was to acquire properties and construct and hold the property. During this process assessee earned these leave ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... client in addition to the passenger lifts has also installed industrial lifts for taking the goods from one floor to other floors of the building. Our client submits that they have developed and constructed the premises with the intention of using them as industrial units by giving the licensees not only the premises but also the supporting infrastructure required for smooth functioning of an industrial unit. In addition to the leave license agreement, out client has also entered into service agreement in respect of various services rendered by them. Copy of the said agreement is annexed herewith as Annexue-C. it can be seen from the annexed agreement that in addition to letting out of premises our client provides various kinds of service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... com 456 (SC). The CIT (A) also allowed in favour of assessee by observing as under:- 7. I have carefully considered the facts of the case, the submissions of the appellant and order of the Assessing Officer. In this connection it is noted that the assessee company had given its two industrial buildings Indiplex-I and Indiplex-II on lease and had received licence feel of Rs. - 25,82,016/and service charges of ₹ 21,24,776/- which were shown as business income. During the curse of assessment proceedings the Assessing Officer had made additions by treating the business income declared by the assessee to be in the nature of income from house property. The counsel of the assessee has vehemently opposed the additions made the Assessing O ..... X X X X Extracts X X X X X X X X Extracts X X X X
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