INCOME TAX ACT, 1961

Section 14

Head of income - Income from House Property or Profit and Gains from Business or Profession - Rental income from Operating Family Entertainment Center-cum-Mall and Maintenance Charges -

Assessee had earned income from family Entertainment Centre-Cum-Malls which was treated as income from house property by AO whereas assessee has claimed it as business income. According to AO, rental income and other indirect income were not the business income. Held: As decided in assessee's own case in CIT v. M/s. E-City Project Construction (P) Ltd. [ITA No. 149 of 2015 and others, 18-7-2017] : 2017 TaxPub(DT) 5002 (Bom-HC) the intention of assessee was to commercially exploit the property by way of complex commercial activities and it was not a case of letting out the property simplicitor. The rental income and service charges thus were received by assessee company as business income during the course of business carried out by them of operating and running a Mall as a commercial activity.

Followed:CIT v. M/s. E-City Project Construction (P) Ltd. [ITA No. 149 of 2015 and Others, dt. 18-7-2017] : 2017 TaxPub(DT) 5002 (Bom-HC) CIT v. Shambhu Investment (P) Ltd. (2001) 249 ITR 47 (Cal) : 2001 TaxPub(DT) 1251 (Cal-HC), ACIT v. E-City Projects Construction (P) Ltd. [ITA No. 5097/Mum/2016, dt. 30-10-2017], Asstt. CIT v. M/s. E-City Projects Construction (P) Ltd. [ITA No. 5696/Mum/2013, dt. 7-8-2015]Relied:Raj Dadarkar & Associates v. ACIT 2017 TaxPub(DT) 1173 (SC), M/s. Chennai Properties & Investments Ltd. v. CIT 2015 TaxPub(DT) 2180 (SC) Shambhu Investment (P) Ltd. v. CIT (2003) 184 CTR (SC) 91 : (2003) 263 ITR 143 (SC) and Sultan Brothers (P) Ltd. v. CIT 1964 TaxPub(DT) 0259 (SC).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. :

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