CA Saurabh Chokhra
Brief of the case:
The ITAT Hyderabad bench in the above cited case held that when the object of assessee’s business is to develop and let out the properties then even when it is also providing other facilities to tenants still the assessee’s income will be assessable as business income.
Facts of the case:
- Assessee had let out its premises in Biotechnology Park and offered its rental income under the head “Income from Business”. AO assessed the rental income under “Income from House Property” whereas income from maintenance under the head “Income from Other Sources”.
- Accordingly recomputed the income of the assessee which was assessed as Rs. .2,40,87,912/- against a loss declared of Rs. . 2,92,49,023/-.
- CIT(A) on appeal held the same to be business income by placing reliance on the decision of Hon’ble Karnataka HC in the case of CIT vs. Venlankani Information Systems Private Limited (218 Taxman 88) held that if the assessee is in the business of taking land, putting up commercial buildings thereon and letting out such buildings with all furniture as his profession or business, then notwithstanding the fact that he has constructed a building and he has also provided other facilities and even if there are two separate rental deeds, it does not fall within the heading of income from house property.
- Aggrieved revenue is in appeal before ITAT.
Contention of the Assessee:
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