Business Income or Income from House Property ??

Court :
Tribunal

Brief :
The primary objective of the assessee is to be seen. If the main intention is to exploit the immovable property by way of commercial activities it must be held as business income.

Citation :
I.T.O. Vs. M/s Tejmalbhai and Co.

Business Income or Income from House Property I.T.O. Vs. M/s Tejmalbhai and Co. 12/30/2005 (2006) 282 ITR (AT) 224 ( Rajkot) Case Fact: Whether the income from renting of warehouse along with services like electricity, telephone, watch and ward is a business income or income from house property? Decision: Held by the Hon"ble ITAT Bench that merely because income is attached to immovable property, it cannot be the sole factor for assessment of such income as income from house property. The primary objective of the assessee is to be seen. If the main intention is to exploit the immovable property by way of commercial activities it must be held as business income.

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Judgement posted by

CA.Saibaburao Nanduri

Chartered Accountant

I am a commerce graduarte of Andhra University. Studied at HINDU COLLEGE, Guntur. Became FCA and started Practice under the name and style of M/s SAIBABU RAO CO I became Chairman of CA Institute, Guntur Branch, during the year 2008-09 My post qualifications are: Information Systems Audit DISA (ICAI) ... Read more

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