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2022 (8) TMI 1136 - HIMACHAL PRADESH HIGH COURTRevision u/s 263 by CIT - whether the letting was doing of a business or the exploitation of the property by the owner? - assessee had earned rental income which had been shown as “Income from Business & Profession” rather than showing the same as “Income from House Property” - whether the income is to be treated as income from business and such a question would depend upon the circumstances of each case, viz., whether a particular business is letting or not? - HELD THAT:- The Hon’ble Supreme Court in Chennai Properties and Investments Limited, Chennai vs. Commissioner of Income Tax Central III, Tamilnadu [2015 (5) TMI 46 - SUPREME COURT] held that where the assessee is a company whose main object of business is to acquire properties and to let out properties, the rental income received therefrom was taxable as “income from business” and not “income from house property”. This view was taken after following the ratio of the judgment of the Hon’ble Supreme Court in Sultan Brothers (P) Ltd. 1963 (12) TMI 4 - SUPREME COURT] wherein it was held that each case has to be looked at from businessman’s point of view to find out whether the letting was doing of a business or the exploitation of the property by the owner. In view of the settled legal position with which we are duty bound to respectfully agree, more particularly, when we do not find any later and recent contrary view to the aforesaid legal position, no fault can be found with the order of the ITAT. Thus, we are clearly of the opinion that once the property in question is used as business asset and the exclusive business of the assessescompany or firm is to earn income by way of rental or lease money, then such rental income can be treated only as “business income of the assessee” and not as income from “house property”. Apart from the above, we notice that no doubt this is a case which falls under the exception laid down in Para 10 (c) of the CBDT Circular dated 20.08.2018. The tax effect otherwise involved in the instant case is barely Rs.8,04,740/- which again dissociates us from interfering with the order passed by the ITAT, more especially, for the reasons as already stated above.
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