TMI Blog2019 (8) TMI 1619X X X X Extracts X X X X X X X X Extracts X X X X ..... e perusal of Object Clause in the Memorandum of Association and Articles of Association that it has been clearly stated that it is the business of assessee to buy, sell, construct and lease-out the properties. Ld.CIT(A) has passed a very reasoned order after following the orders of coordinate benches. We therefore do not find any infirmity in the order of CIT(A) and the same is affirmed by dismissing the ground of Revenue. This Ground of appeal raised by Revenue is dismissed. - 4261/Mum/16, 4262/Mum/16 - - - Dated:- 19-8-2019 - Shri Mahavir Singh, Judicial Member And Shri Rajesh Kumar, Accountant Member Appellant by : Shri N.S. Jangpangi, CIT-DR, Respondent by : Shri Chetan Karia, AR ORDER Rajesh Kumar, The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y'. The appellant prays that the order of CIT (A) on the above ground be set aside and that of Assessing Officer be restored. 3. The issue raised in Ground No.1 by the Revenue in this appeal is against the order of CIT(A) directing the AO to treat the income of assessee from operation and maintenance of Information Technology Park amounting to ₹ 25,72,92,631/- as income under the head Profits and Gains of business or profession by reversing the order of AO wherein it has been held that assessee has fulfilled the conditions prescribed u/s.22 of the Income Tax Act (Act) and also that leasing out of property is not in the object clause of the Memorandum and Articles of Association of the assessee-company. 3.1. The fact in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... parameters prescribed in section 22 of the I.T.Act are satisfied or complied, the income requires to brought to tax under the head income from House Property . Now let us see what the criteria s are prescribed by the section 22 for this purpose in nutshell. Following are the criteria prescribed by Section 22 i. There should be house, ii. It should be owned by the assessee and iii. Such house should not be used by the assessee for his own business purpose. 3.3. Ld. DR vehemently argued that the income received by assessee in the nature of property income as it falls within the four corners of the provisions of Section 22 of the Act. The AO has comprehensively discussed the issue and came to the reasonable and correct view that incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent of Information Technology Park in Chennai. Ld.AR took the Bench to various terms and conditions as contained in the Lease Deed. Similarly, Ld. AR took us to the copy of the Balance Sheet, showing the expenditure incurred on the said Technology Park and also capitalization done during the year. Similarly, Ld.AR referred to the copies of Maintenance Agreements filed in the Paper Book. Ld.AR submitted that the entire asset is for business purpose of the assessee and not in the nature property as envisaged u/s.22 of the Act. Ld.AR relied heavily on the decision of the Hon'ble Karnataka High Court in the case of CIT VS. Velankani Information Systems (P.) Ltd., [265 CTR 0250 / 218 Taxman 0088 / 94 DTR 0357] (Karnataka), wherein the Hon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ially developed Information Technology Park in Chennai. The assessee has leased out the building to M/s. Amazon Development Centre India Private Limited and others by way of lease agreements and also entered into a special agreement for providing for amenities and facilities, which have been treated as business income . We further observe from the perusal of Object Clause in the Memorandum of Association and Articles of Association that it has been clearly stated that it is the business of assessee to buy, sell, construct and lease-out the properties. Ld.CIT(A) has passed a very reasoned order after following the orders of coordinate benches. We therefore do not find any infirmity in the order of CIT(A) and the same is affirmed by dismissi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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