Lease Rent & Packaging Charges from Manufacturing Services is Business Income

DCIT Vs Hyderabad Distilleries and Wineries Pvt Ltd (ITAT Delhi) Introduction: In a recent judgement by the Income Tax Appellate Tribunal (ITAT) Delhi in the case of Hyderabad Distilleries and Wineries Pvt Ltd, the tribunal ruled that income derived from lease rent and packaging charges under lease agreements for providing manufacturing services to Indian Made Foreign Liquor (IMFL) is considered business income. The judgement sets a significant precedent and can influence how income from such activities is classified in future tax assessment scenarios. Analysis: The core dispute in this case r...