Case Law Details
Tulsidas V. Patel Vs DCIT (ITAT Mumbai)
ITAT Mumbai held that the Leave & License Fee is assessable under the head “Profits & Gains of Business” and not under “Income from House Property”.
Facts- During the previous year, the control and management of affairs of the Appellant-Company continued to be with the receiver/administrator appointed by the Hon’ble Bombay High Court who also filed the return of income for the A.Y. 2012-13 on 14/12/2013, in his capacity as administrator/receiver, declaring total income of INR 2,09,82,760/. The Appellant only earned income by way of Leave & License Fee which was offered to tax as business income.
During the course of assessment proceedings, AO was of the view that Lease & License Fee was liable to tax under the head ‘Income from House Property’ and therefore, show cause notice was issued to the Appellant asking the Appellant to explain why Leave & License Fee should not be assessed under the head ‘Income from House Property’.
AO concluded that Leave & License Fee received by the Appellant from the occupants was assessable under the head ‘Income from House Property’.
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