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TMI Blog2015 (8) TMI 460X X X X Extracts X X X X X X X X Extracts X X X X ..... from house property as business income, therefore, all these appeals were heard together and are now disposed of by this consolidated order. 3. We have heard rival contentions and perused the record. Facts in brief are that the assessee is a private limited company is engaged in the business of buying properties on ownership or lease or rental basis and to give on long lease, sublease and/or rental basis. The source of income of the assessee company is rental income which is part and parcel of the activities of the company. Since 2000, the assessee company is duly reflecting such rental income as income from business or profession and the same. The assessee has also duly reflected these assets as business assets and also claimed depreciat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ven in view of the decision of the Hon'ble Supreme court in the case of M/s Shambhu Investment Pvt. Ltd. that has upheld all the findings and ratio of Hon'ble Calcutta High Court (supra), th eimpugned income is assessable as business income in the instant year also. The assessing officer is not correct in saying that the facts of the assessee are exactly similar to the facts of Shambhu Investment Pvt. Ltd. (supra). In that case, the Hon'ble High Court found from a plain reading of the agreement that it was apparent that the intention of the parties to the said agreement was clear and unambiguous by which the first party had allowed the second party to enjoy the said table space upon payment of the comprehensive monthly rent. The Hon'ble Hig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erty. Ld. DR further submitted that the Memorandum of Association of the assessee company is not final and the objects stated in the Memorandum of Association is what the assessee is permitted to do, which assessee has not done so far. For this purpose, ld. DR relied on the decision of Hon'ble Supreme Court in the case of Oriental Investment Co. Ltd. Vs. CIT, 32 ITR 664 (SC). 5. On the other hand, learned AR, relying on the various judicial authorities, submitted that the main objects of the assessee company are to buy properties, develop and to lease out the property and the income received from letting out properties should be assessed as business income. Ld. AR further submitted that the assessee has reflected in its regular books of ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income from house property or as income from business. If it is found that main intention is to simply let out property or any part of it, resultant income must be assured assessed as income from house property but if main intention is found to be exploitation of property by way of commercial activities, then resultant income must be held as business income. Where assessee company has developed shopping malls/business centres on properties owned by it and let out same by providing host of services/facilities/amenities in the said mall/business centres, it can be said that basic intention of assessee was commercial exploitation of its properties by developing them as shopping malls/business centres, therefore, income derived therefrom is ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le Court expressed the view that if the services rendered by the assessee are the results of its activities carried on continuously in an organized manner, with a set purpose and with a view to earn profits, those activities would constitute business activities and the income arising therefrom would be assessable as business income under section 28 of the 1961 Act. 8. A perusal of the agreements entered by assessee would show that the activities involved in providing the various services/facilities/amenities meet all the aforesaid four requirements laid down by Hon'ble Supreme Court to qualify as business activities. Hence, we do not find any reason to deviate from the findings recorded by the CIT(A). Accordingly, we uphold the order of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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