Rental income earned by developer is house property Income not business income

ACIT Vs Ashapura Developers (ITAT Mumbai) Conclusion: Assessee was in the business of development of real estate projects and letting of property was not the exclusive business of assessee, therefore, the rental income earned by assessee was rightly treated as income under the head ‘House Property’ instead of ‘business income’. Held: Assessee was in the business of developers and during the year under consideration, assessee earned income from units leased out to certain parties and such leasing was done for long tenures. Assessee had claimed the lease rental income to be incom...