Case Law Details
CIT Vs Tidel Park Limited (Madras High Court)
The issue under consideration is whether the income derived from letting out of the property in an industrial park/SEZ including the amenities would be business income in the hands of the owner of the property?
High Court states that on account of the circular No.16 of 2017 issued by the CBDT dated 25.04.2017. The CBDT after taking note of the two decisions of the Karnataka High Court held that it is now a settled position that in the case of an undertaking which develops, develops and operates or maintains and operates an industrial park/SEZ notified in accordance with the scheme framed and notified by the Government, the income from letting out the premises/developed space along with other facilities in an industrial park/SEZ is to be charged to tax under the head ‘Profits and Gains of Business’. Further, after referring to the decision in the case of CIT Vs. Chennai Properties and Investments Limited, reported in (2005) 274 ITR 117, it was pointed out that income derived from letting out of the property with all amenities and facilities would be income from business and cannot be assessed either as income from house property or as income from other sources. Considering all those facts as wells as the circular issued by CBDT, the appeal has to be answered against the revenue and in favour of the assessee.
FULL TEXT OF THE HIGH COURT ORDER /JUDGEMENT
These appeals at the instance of the revenue filed under Section 260A of the Income Tax Act, 1961 (the ‘Act’ for brevity), are directed against the common order passed by the Income Tax Appellate Tribunal ‘A’ Bench, Chennai in ITA Nos.1700 & 1701/Chny/2017 dated 04.04.2018 for the Assessment Years 2011-12 and 2012-13.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
