Income from letting of mall whether income
from house property or business income
Facts:
Assessee
was the owner of a mall and had offered income from letting of the mall as
business income. Revenue's contention was that it was income from house
property. On appeal CIT(A) agreed with the contention of the assessee based on
past year disclosures. On further appeal -
Held
against the revenue that the income from letting of malls was business income.
Applied:
Own case - Honble ITAT for assessment years 2010-11 to
2013-14 vide ITA No. 3560/Ahd/2015 and ITA No.135/Ahd/2018.
CIT v. E City Real Estate (P.) Ltd. (2018)
100 taxmann.com 94 (SC) : 2018 TaxPub(DT) 7732 (SC),
CIT v. Oberon Edifices & Estates (P) Ltd, reported in (2019)
103 taxmann.com 413 (Kerala) : 2019 TaxPub(DT) 1869 (Ker-HC)
Chennai Properties & Investments Ltd. (2015)
56 taxmann.com 456 (SC) : 2015 TaxPub(DT) 2180 (SC)
Rayala Corporation (P.) Ltd. (2016)
72 taxmann.com 149 (SC) : 2016 TaxPub(DT) 3682 (SC)
Ed. Note:
The department is in higher appeal on the verdict of ITAT of earlier years. The
scheduler system of taxation was endorsed by the Apex court judgments of Sultan
Brothers v. CIT, (1964) 51 ITR 353 (SC) : 1964 TaxPub(DT) 0259 (SC)
and East India Housing and Land Development Trust Ltd. v. Commissioner
of Income Tax (1961) 42 ITR 49 (SC) : 1961 TaxPub(DT) 0132 (SC) on this
conundrum. The law has since then got diluted with a number of judgments going
against these verdicts.
Case: DCIT v. Gulmohar Park Mall (P) Ltd. 2023 TaxPub(DT) 3810 (Ahd-Trib)