Business Income or Income from House Property ??

Last updated: 03 September 2007

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.