Rental income versus business income

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SHIVA KUMAR (Querist)
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24 January 2013 The assessee company is premimarily involved renting of immovable property. I remember reading one of the Karnataka High Court decision holding that such income is income from business. can anyone help me with the caselaw??

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24 January 2013 ASSESSMENT OF RENTAL INCOME FROM IMMOVABLE PROPERTY

No straitjacket formula can be devised to determine conclusively as to under which head income from immovable property should fall; all the relevant factors need to be necessarily looked into to decide the character of income; if the facts show that the assessee is doing a complex commercial activity by exploiting the immovable property, then the income would fall under the head “Profits and gains from business or profession”; if on the other hand, the assessee has simply let out the space and is earning the rental income, it would fall under the head ‘Income from house property’.

I was unable to find the case law, but this is what i found from taxmann's site.

Link : https://www.taxmann.com/datafolder/Flash/flashbn18-5-09_4.htm

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