Income from house property or business income

Last updated: 31 October 2008

Court :
Kolkata High Court

Brief :
Whether income from mall management and business centre under agreements with users for providing services and limited rights granted to users while owner ship remains with owner is income from business or house property?

Citation :
PFH Mall and Retail Management Ltd. Vs. ITO 05/11/2007 [2008] 298 ITR (AT) 371

Held by the Honourable Bench that the income obtained was not merely because of the bare letting of the premises but also because of the facilities and services rendered and just as utilisation of accommodation for providing board and lodging facility to customer is a commercial activity, utilisation of space for providing shopping facilities is also a commercial activity. Therefore income form mall management and business centre is business income.