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| The Tax Publishers2020 TaxPub(DT) 3730 (Mad-HC) : (2020) 428 ITR 0514 INCOME TAX ACT, 1961
Section 260A
Where, in the terms of memorandum of association, the main object of assessee given was to acquire properties and earn income by letting out the same, such income was brought to books as business income and not as income from house property, therefore, substantial question of law was answered in favour of the assessee.
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Appeal (High Court) - Correct head of income - Rental income of assessee from software technology park developed -
Issue arose for consideration as to whether the income derived from letting out of the property in an industrial park/SEZ, including the amenities and the income received by the owners for such property and amenities therein would be business income in the hands of the owner of the property. Held: Supreme Court in the case of Chennai Properties & Investments Ltd. v. CIT (2015) 373 ITR 673 (SC) : 2015 TaxPub(DT) 2180 (SC) held that where, in the terms of memorandum of association, the main object of assessee given was to acquire properties and earn income by letting out the same, such income was brought to books as business income, and not as income from house property. Therefore, substantial question of law was answered in favour of the assessee.
Followed:M/s. Chennai Properties & Investments Ltd. v. The CIT (2005) 274 ITR 117 (Mad-HC) : 2005 TaxPub(DT) 1247 (Mad-HC) CIT, Corporate Circle -- III (1), Chennai v. M/s. Tidel Park Limited [TCA. Nos. 732 & 733 of 2018, dt. 7-7-2020] : 2020 TaxPub(DT) 2875 (Mad-HC) CIT Chennai v. M/s. Elnet Technologies Limited (2013) 30 Taxmann.com 63 (Mad) : 2013 TaxPub(DT) 0684 (Mad-HC) CIT v. Chennai Properties and Investments Limited. (2015) 373 ITR 673 (SC) : 2015 TaxPub(DT) 2180 (SC) Asst. CIT, Corporate Circle-4 (1), Chennai v. Lulu Tech Park (P) Ltd. 2017 TaxPub(DT) 1259 (Chen-Trib)
REFERRED :
FAVOUR : In assessee's favour
A.Y. : 2008-09
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