Brief of the case:
The ITAT Mumbai in the case of M/s Steller Developers P. Ltd. held that if the letting out of property is with intention to commercially exploit and it is the main object of assessee company then income from such leasing/letting is assessable under business head and not as house property.
Facts of the case:
- The assessee has leased out commercial properties and offered the income from the same as business income. The Assessing officer assessed the same under the head house property as income as the same is covered by charging section 22 of House Property Income.
- The CIT (A) decided the case in favour of assessee as the same has been decided by tribunal in assessee’s favour in previous assessment years.
Contention of Assessee:
- The identical issue has been decided by tribunal in the favour of assessee in previous assessment year.
- Further, it was submitted that the on the same facts Hon’ble Supreme Court in the case of Chennai Properties Ltd. decided the issue in favour of assessee and held that if the complex letting of properties is the main object of company then the same is taxable as business income and cannot be taxed under house property merely because the rental income is from house property.
Contention of Revenue:
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