CONDITIONS NECESSARY FOR TAXING INCOME
FROM HOUSE PROPERTY
• The property should consist of any building or land appurtenant thereto : - Satisfied
• The assessee should be the owner of the property : - Satisfied
• The property should not be used by the owner for the purpose of any business or profession carried on by him,
the profits of which are chargeable to tax. : - Satisfied
In case provided by you all the three conditions are satisfied and hence income from letting out of this property will be taxable under income from house property.
This can not be treated as a business income because the enterprising is engaged in real estate activities and in general parlance real estate activity does not include leasing of property