Case Law Details
Swar Maya Infotech P. Ltd. Vs ITO (ITAT Delhi)
Introduction: The Income Tax Appellate Tribunal (ITAT) in Delhi recently analyzed the case of Swar Maya Infotech P. Ltd. against the Income Tax Officer (ITO). Central to this appeal was the categorization and treatment of rental and facility management service incomes.
Background: The appeal arose from an earlier decision by the Commissioner of Income Tax (Appeals) [CIT(A)] wherein the classification of certain incomes of Swar Maya Infotech was scrutinized and re-characterized, leading to an enhancement in the taxable income of the company.
Key Controversies:
1. Nature of Income: One of the primary bones of contention was how the rental income was categorized. While the assessee declared it under ‘income from house property,’ the CIT(A) believed it should be assessed under ‘business income.’
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