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Issues involved: Determination of whether the amount received by the assessee should be treated as income from house property or income from business for the assessment year 2001-02.
Summary: The High Court of Delhi heard an appeal by the revenue against an order passed by the Income-tax Appellate Tribunal regarding the assessment year 2001-02. The assessee, engaged in real estate development, rented out premises to a company and received a commission on sales made by the company using the premises. The Assessing Officer initially considered the amount as income from house property, but the Commissioner of Income-tax (Appeals) disagreed. The CIT(A) viewed the agreement as a joint venture or business agreement, involving the assessee in the day-to-day functioning of the store, upkeep of the building, and management activities. The Tribunal upheld this view, noting the genuine nature of the business agreement and the active involvement of the assessee in managing the store due to market conditions. Both the CIT(A) and the Tribunal found that the arrangement was not a sham and required the assessee's participation in store management, leading to the conclusion that the amount received should be treated as business income rather than income from house property. The High Court concurred with this finding, stating that no substantial question of law arose for consideration, and subsequently dismissed the appeal.
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