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| The Tax Publishers2019 TaxPub(DT) 7131 (All-HC) : (2019) 418 ITR 0681 : (2020) 317 CTR 0801 : (2020) 269 TAXMAN 0134 INCOME TAX ACT, 1961
Section 14
Assessee did not carry out any systematic, recurring business activity in an organised manner nor there was any volume, frequency, continuity and regularity of transactions, and only one person was employed by it for management and to look after the leased property, accordingly, AO had rightly held impugned receipts as income from house property and not as business income.
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Head of income - Income from house property or Business income - Receipts from leasing of property - Assessee claiming itself to be engaged in real estate business--No systematic recurring activity and no frequent transactions
Assessee claimed to have engaged in the business of real estate and allied activities such as leasing and subletting, maintaining properties on contracts. It leased out certain property to GAIL and declared lease rentals as business receipt. AO after considering concerend agreements as well as the statement of one of partners found that assessee was not involved in any kind of recurring activity to treat the receipt as business receipt. Accordingly, AO treated said income as house property income.Held: Assessee did not carry out any systematic, recurring business activity in an organised manner nor there was any volume, frequency, continuity and regularity of transactions, and only one person was employed by it for management and to look after the leased property, accordingly, AO had rightly held impugned receipts as income from house property, and not as business income.
Relied:Mangla Homse (P) Ltd. v. ITO 325 ITR 281 (Bom), East India Housing and Land Development Trust Ltd. v. CIT (1961) 42 ITR 49 (SC) : 1961 TaxPub(DT) 132 (SC).
REFERRED :
FAVOUR : Against the assessee.
A.Y. : 2006-07 & 2008-09
IN THE ALLAHABAD HIGH COURT
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