Prestige Estates Projects Ltd. v. Dy. CIT

INCOME TAX ACT, 1961

--Head of income--Business income or income from house propertyRental income from letting of malls--Letting out as an organised commercial activity--Where assessee, a real estate dealer, was earning rental income from letting out of malls, then such income would be treated under head 'Income from business' as assessee was letting out property for commercial exploitation by way of an organized commercial activity.--AO noticed that assessee had received rental income from malls and treated the same under head 'Income from business', against which various expenses had been claimed. Assessee submitted that it was in the business of letting out of properties and thereby earning rental income and the same had been considered as business receipts. AO held that the income derived by letting out properties was akin to any landlord tenant relationship therefore, the rental income should be treated as 'Income from house property'. Held: Income received by the assessee from letting out of Malls was assessable under the head 'Income from profits and gains of business or profession'.