Income from leasing of building

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navitha

articleship student

25 Points Joined August 2014

Friends, tell me one thing... A company does the business of constructing, leasing& selling the buildings, apartments,.....etc....The MOA of the company states that the objective of the business is "To carry on the business of constructing, erecting, building, repairing, remodeling, selling, leasing out and maintaing buildings, houses, apartments". Can't we consider income from leasing of buildings as income from PGBP?

Please clear my doubt and mention the relevant provision and csse law if any relating to my question.

Thanks in advance...

Replies (2)

Amit Bavishi

Student

1086 Points Joined May 2014

Any income charged under PGBP is the income which accrued from the business of asseesee. Income charged under IFOS is income which is pertaining to income which are not accrued in normal business. MOA of the company gives power to the company and decide the scope of work that can be undertaken. Leasing being one of the part of the company's business activity, income from leasing will be charged under PGBP