Temporary letting of property till Approval of Real Estate Project is Business Income

ITO Vs M/s. United White Metal Ltd. (ITAT Mumbai) We noticed that the rental income of the assessee was to the tune of Rs.2,16,00,000/- which has been shown as income from business. However, the AO declined the claim of the assessee on the basis of this fact that the no activity of business was going on, therefore, the said rental income was treated as income from house property and accordingly, the deduction u/s 24(a) and 23(1) of the Act was allowed and the remaining income in sum of Rs.1,19,73,405/- was treated as income from house property and accordingly taxed. Initially the business of t...