Case Law Details
Ambattur Infra Developers Vs DCIT (ITAT Chennai)
Conclusion – Main object of the assessee firm, as laid down in the partnership deed, includes leasing of industrial park hence the income of the assessee both from leasing the space as well as providing maintenance services had to be considered only under the head income from business.
Facts –
Assessee has given on rent an IT park called Ambit IT Park. Assessee has entered into two agreement with the lessee, one for renting out the space and another providing services and maintenance. Assessee shown its income under the head ‘Income from business / profession’. However, AO noted that the lessee had deducted tax u/s 194I and hence the income is classifiable under ‘income from house property’.
Assessee submitted that IT park was taken on lease by the companies not only for the space but also due to the host of supporting features like uninterrupted power supply, air conditioning, voice and data communication network etc. Assessee submitted that though there were two separate agreements, the object of the assessee was renting out of IT park and hence the same is classifiable under ‘Income from Business / Profession’.
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