Case Law Details
ACIT Vs M/s. E-city Projects Construction Pvt. Ltd. (ITAT Mumbai)
The Tribunal in its Judgment, while appreciating the facts, has observed that the various malls are built by Assessee and are operated from the year 2001. The operational income received from the said activity, in the form of rent, and other service charges was consistently offered to tax as its business income in the earlier years and the same was accepted by the Department as a business income. After demerger, both the Assessee Companies took over the assets and liabilities of the demerged Company and continued the same business of operating and running the malls. The Tribunal has considered the nature of the business activities of the Assessee Company, as well as, terms and conditions of the relevant agreements, under which the commercial space in the mall was given on hire by the Assessee Companies to the concerned parties. It also considered the various services provided by the Assessing Companies during the course of operation and running of the Family Entertainment Centre-cum-malls. On appreciation of facts, the Commissioner (Appeals) and the Tribunal have concurrently arrived at a conclusion that the intention of the Assessing Companies was to commercially exploit the property by way of complex commercial activities and it was not a case of letting out the property simplicitor. The rental income and the service charges thus were received by the Assessee Company as business income during the course of business carried out by them of operating and running a Mall as a commercial activity.
FULL TEXT OF THE ITAT JUDGEMENT
These are appeals by the Revenue are directed against the order of the learned Commissioner of Income Tax (Appeals)-16, Mumbai (‘ld.CIT(A) for short) dated 28.04.2017 and pertains to the assessment years (A.Y.) 2013-14 and 2014-15.
2. The common grounds of appeal read as under:
Please become a Premium member. If you are already a Premium member, login here to access the full content.
