2015 (4) TMI 869

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..... he intention is to carry on the business of letting out the commercial property and carrying on 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. In the facts of this case, it is clear that the entire construction and the interiors are all done with the sole intention of carrying on the business and therefore, the claimant is entitled to treat the entire income as income from business. Merely because the document is styled as lease deed and building is involved. Therefore, the authorities were not justified in bifurcating the rental income and the business income. The rental income shall be treated as income from the business, .....

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..... ncome from other sources. Aggrieved by the said order, assessee preferred an appeal to the Commissioner of Income Tax (Appeals). The First Appellate Authority treated 60% of the said rental income as income from business property and 40% of the income as income from house property. Aggrieved by the said order, assessee preferred an appeal to the Tribunal. The Tribunal has affirmed the said order. 4. Even the revenue also has preferred an appeal. The Tribunal dismissed both the appeals and affirmed the findings recorded by the First Appellate Authority. It is against the said order, only the assessee preferred an appeal. 5. The substantial questions of law framed in this case at the time of admission are as under: (i) Whether on the .....

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..... ing and he has also provided other facilities and even if there are two separate rental deeds, it does not fall within the heading of income from house property. Therefore, 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. 7. Therefore, what is to be seen is; firs .....

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