Case Law Details
ACIT Vs International Recreation Parks (P) Ltd (ITAT Delhi)
The Income Tax Appellate Tribunal (ITAT) in Delhi recently delivered a verdict in the case between the Assistant Commissioner of Income Tax (ACIT) and International Recreation Parks (P) Ltd. The crux of the matter revolves around the proper classification of income—specifically, whether income once taxed as house property can later be re-classified and taxed as business income. This case has generated considerable interest among tax experts, property developers, and businesses alike.
The Case Background
The assessee, International Recreation Parks, was allotted land for 90 years by the Noida Authority, primarily for developing an amusement park. The company claimed that its income was from development for amusement park purposes, including signage, kiosks, and maintenance services. This income had been classified as income from house property in previous assessments, and the authorities had accepted this classification.
The Controversy
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