CIT Vs Ascendas IT Park (Chennai) Ltd. (Madras High Court)
Madras High Court held that lease rent received from letting out property in industrial park is chargeable to tax under the head ‘Income from Business’ and not under the head ‘Income from house property’.
Facts- The appellant has filed these appeals against the Impugned Order for Assessment Year 2008-09 dated 11.09.2014 and Impugned Common Order for Assessment years 2006-07, 2009-10 and 2007-08 respectively passed by the Income Tax Appellate Tribunal. In all these appeals, common questions of law has arisen as to whether the income from leased property of the respondent – Assessee has to be treated as income from House property or business income.
Conclusion- Circular No.16 of 2017 of the Central Board of Direct Taxes was also issued by the Commissioner of Income Tax ( A & J), CBDT, New Delhi dated 25.04.2017, wherein it has been clarified 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 of premises/developed space along with other facilities in an industrial park is to be treated as income from business of an assessee.
