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TMI Blog2016 (8) TMI 522X X X X Extracts X X X X X X X X Extracts X X X X ..... acts of these appeals, in our opinion, the High court was not correct while deciding that the income of the assessee should be treated as Income from House Property. - The business of the company is to lease its property and to earn rent and therefore, the income so earned should be treated as its business income. We, therefore, set aside the impugned judgments and allow these appeals with no order as to costs. We direct that the income of the assessee shall be subject to tax under the head Profits and gains of business or profession . - Civil Appeal No.6437 of 2016, Civil Appeal No.6438 of 2016, Civil Appeal Nos.6439-6440 of 2016, Civil Appeal No.6441 of 2016 - - - Dated:- 11-8-2016 - Anil R. Dave And L. Nageswara Rao, JJ. Fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee submitted that the issue involved in these appeals is no more res integra as this Court has decided in the case of Chennai Properties and Investments Ltd. v. Commissioner of Income Tax [2015] 373 ITR 673 (SC) that if an assessee is having his house property and by way of business he is giving the property on rent and if he is receiving rent from the said property as his business income, the said income, even if in the nature of rent, should be treated as Business Income because the assessee is having a business of renting his property and the rent which he receives is in the nature of his business income. 4. According to the learned counsel appearing for the assessee, the afore-stated judgment in the case of Chennai Properties ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in dispute at all. 7. For the afore-stated reasons, the learned counsel submitted that the impugned judgment delivered by the High Court is not proper for the reason that the High Court has directed that the income earned by the appellant assessee should be treated as Income from House Property . 8. On the other hand, the learned counsel appearing for the respondent-Revenue made an effort to justify the reasons given by the High Court in the impugned judgment. The learned counsel also relied upon the judgment delivered by this Court in the case of M/s. S.G. Mercantile Corpn. (P) Ltd. v. CIT, Calcutta (1972) 1 SCC 465. According to him, the important question which would arise in all such cases is whether the acquisition of property f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sel appearing for the Revenue. 11. The judgment relied upon by the learned counsel appearing for the assessee squarely covers the facts of the case involved in the appeals. The business of the company is to lease its property and to earn rent and therefore, the income so earned should be treated as its business income. 12. In view of the law laid down by this Court in the case of Chennai Properties (supra) and looking at the facts of these appeals, in our opinion, the High court was not correct while deciding that the income of the assessee should be treated as Income from House Property. 13. We, therefore, set aside the impugned judgments and allow these appeals with no order as to costs. We direct that the income of the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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