Rental income from Subletting BOT assets developed in metro station - Whether house property or business income

Facts:

Assessee was granted leasehold rights of land in two metro stations of DMRL on BOT basis in which they had made substantial investments and were earning rent by subletting the same. For earlier assessment years 2011-12 to 2014-15 assessee offered income as house property and then revised it as business income. Similarly they filed the income as business income for the said relevant asst. year as well. This was read to be house property income by AO applying section 27(iiib) as deemed owner of the lease. On appeal CIT(A) allowed the appeal of the assessee citing earlier year views. On further appeal by revenue -

Held against the revenue that the letting out was income from business.

CBDT circular no.9/2014 dated 23-04-2014 for BOT project revenue will apply to the assessee entailing them benefits of depreciation etc. as well.

Case: ACIT v. Rcube Projects Pvt. Ltd. 2023 TaxPub(DT) 2474 (Del-Trib)