The Tax Publishers2020 TaxPub(DT) 0326 (Mum-Trib) : (2020) 181 ITD 0401

INCOME TAX ACT, 1961

Section 14

Since assessee was eligible to claim exemption under section 11, this issue becomes redundant and rental income had to be treated as income from house property as assessee had rented out his premises without carrying on any business activity itself, therefore, assessee had rightly claimed such income under the head 'House property'.

Head of income - Income from house property or Business income - Rental income received by assessee being a trust -

Assessee was engaged in promotion of equestrian sports viz. providing instructional course, lecture and demonstration, training, schooling and care, maintenance of horses and horsemanship and offered kind of equestrian sports and knowledge of horse and to give all facilities for practice thereof. Ground raised by Revenue was on the issue of proper head under which the rental income received by assessee from a private limited company in respect of renting of immovable property. While it was the claim of assessee that rental income had to be assessed under head “Income from House Property”, AO treated it as “Income From Business”. However, CIT(A) agreed with the assessee's claim. Held: Be that as it may, since assessee was eligible to claim exemption under section 11, this issue becomes redundant. Suffice to say, after analyzing the facts on record, rental income had to be treated as income from house property as assessee had rented out his premises without carrying on any business activity itself. Therefore, assessee had rightly claimed such income under the head 'house property'.

REFERRED :

FAVOUR : In assessee's favour

A.Y. :



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