KARNATAKA HIGH COURT - Income Tax
Warehousing rental charges - Nature of income – Income from business OR income from House property – Held that:- Following CIT v. Velankani Information Systems (P) Ltd. KARNATAKA HIGH COURT] - firstly what is the intention behind the lease and secondly what are the facilities given along with the buildings and documents executed in respect of each of them is to be seen. Thirdly it is to be found out whether it is inseparable or not. If they are inseparable and the intention is to carry on the business of letting out the commercial property and carrying at complex commercial activity and getting rental income therefrom, then such a rental income falls under the heading of profits and gains of business or profession.
Any other interpretation would defeat the very object of introduction of Section 80-IA as well as the scheme which is framed by the Government for development of industrial parks in the country – thus, the rental charges received by the assessee are assessable under the head income from business and not under home property - thus, no substantial questions of law arises for consideration – Decided against Revenue
Any other interpretation would defeat the very object of introduction of Section 80-IA as well as the scheme which is framed by the Government for development of industrial parks in the country – thus, the rental charges received by the assessee are assessable under the head income from business and not under home property - thus, no substantial questions of law arises for consideration – Decided against Revenue
Regards
Prarthana Jalan
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