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Temporary Factory Letting Doesn’t End Business: ITAT Holds User Charges as Business Income
Case Law Details
- Case Name
- Rayat Sahakari Sakhar Karkhana Ltd. Vs ITO (ITAT Pune)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Related Assessment Year
- 2015-16
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Rayat Sahakari Sakhar Karkhana Ltd. Vs ITO (ITAT Pune)
Temporary Letting ≠ End of Business: User Charges Are Business Receipts – ITAT Holds Sugar Factory Income as Business Income
Assessee-sugar factory had temporarily handed over crushing operations to Sahu SSK under a collaboration agreement dated 27.08.2009, receiving user charges linked to MT crushed. AO treated these receipts as “Income from Other Sources”, held that Assessee had ceased business, & denied set-off of brought-forward losses of ₹26,86,106.
CIT(A)-NFAC upheld the view, treating activity as passive income. Tr...
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