Case Law Details
If the main intention is to exploit the immovable property by way of complex commercial activities, in that event, it must be held as business income
ITO Vs. Shanaya Enterprises (ITAT Mumbai) – Merely because income is attached to any immovable property cannot be the sole factor for assessment of such income as income from property; what has to be seen is what was the primary object of the assessee while exploiting the property. If it is found, applying such test, that main intention is for letting out the property, or any part thereof, the same must be considered as rental income or income from property. In case, it is found that the main intention is to exploit the immovable property by way of complex commercial activities, in that event, it must be held as business income.
IN THE INCOME TAX APPELLATE TRIBUNAL
MUMBAI BENCHES “J”, MUMBAI
ITA No. 3648/MUM/2010
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