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| The Tax Publishers2020 TaxPub(DT) 1783 (Mad-HC) INCOME TAX ACT, 1961
Section 14
Where assessee (Tamil Nadu Government undertaking) leased out properties (hotels etc.) owned by it to run activities against lease rentals as well as franchisee fees from lessees, considering that properties let out by assessee were invariably its business assets being let out in course of carrying out its business in usual manner, lease/franchise income were assessable as business income.
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Heads of income - Income from house property or Business income - Franchise fee received by assessee -
Assessee challenged order of Tribunal holding that franchise fees should be assessed as business income and not under head income from house property without appreciating that leasing of Hotels and Restaurants is distinct from its business of operating and maintaining the hotels. Held: Issue already is decided in Judgment of Court in the case of 'Tamil Nadu Toursim Development Corporation Ltd. v. Deputy Commissioner of Income Tax' reported in [(2014) 368 ITR 533 (Mad) : 2014 TaxPub(DT) 4250 (Mad-HC)]. Thus, appeals were liable to be dismissed.
Followed:Tamil Nadu Tourism Development Corporation Ltd. v. Dy. CIT (2014) 368 ITR 533 (Mad) : 2014 TaxPub(DT) 4250 (Mad-HC), Tamil Nadu Tourism Development Corporation Ltd. v. Asstt. CIT (2014) 90 CCH 0087 (Chen-HC)
REFERRED :
FAVOUR : Against the assessee
A.Y. :
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