Case Law Details
Pr. CIT Vs Shreeji Exhibitors (Bombay High Court)
The impugned order of the Tribunal noted the fact that the assessee’s activity of letting out building premises is its business activity. This, the Tribunal observed it is clear from objects of the respondent as set out in its partnership deed viz. to deal with properties i.e. to construct real estate, multiplex centre, entertainment complex etc. and operate and manage the same. On the basis of the above object clause the impugned order dated 14th August, 2015 placed reliance on Chennai Properties & Investment Limited Vs. CIT1, to hold that the objects clause of the respondent-assessee’s partnership deed would be the determining factor to decide the nature of income. On the above basis, it concluded that it is business income. In case of Chennai Properties & Investment Limited (supra) the object of the Assessee therein was to acquire properties and let out the same. In above view the appeal of the respondent was allowed and held that the income from letting out of business premises was taxable under the head business income not income from the house property.
FULL TEXT OF THE HIGH COURT JUDGEMENT
1. This Appeal under Section 260A of the Income Tax Act, 1961 (the Act), challenges the order dated 14th August, 2015 passed by the Income Tax Appellate Tribunal (the Tribunal). This Appeal relates to Assessment Year 2009-10.
2. The Revenue urges the following question of law for our consideration:
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