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TMI Blog2010 (11) TMI 1052X X X X Extracts X X X X X X X X Extracts X X X X ..... he part of the club premises as the income from house property or business income. 3. Brief facts of the case are that the assessee is engaged in the business activities of club house and resort and provides recreation facilities of swimming pool, indoor games, joyride and entertainments. The assessee s resort is located in Mumbai Pune High way at Village Vineigaon, Taluka, Khalapur, Dist. Raigad. The assessee took over the management of the existing company. During the relevant year to the assessment year under consideration, the development activities of the building were also in progress. The assessee leased out the club rooms and other infrastructures in the building to MMTI Educational Research Trust, Veera Desai Road, Andheri (W), ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... held that this is not a case of exploiting the business assets. The property has been leased out to an educational institution as owner of the property. Hence the income is taxable under the head Income from House property . This ground of appeal is dismissed 5. Before us, the learned AR of the assessee has submitted that the part of the business premises was let out to MMTI Educational. Research Trust for a period of three years. The assessee surrendered the club and resort business and the part of its premises was let out for a temporary period in order to exploit the business premises till the development and construction work is completed. Therefore, the assessee was exploited the business asset for making the profit in that busi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ork of the business premises was in progress, therefore, the portion which was leased out by the assessee was never utilized by the assessee for its business activities. It is not the case of letting out the business asset which is ready for running the business of resort or club but the assessee has simply let out the premises to an educational institution for conducting the education classes which has no connection with the business activities of the assessee. Therefore, it is not a case of letting out of premises alongwith the machinery, furniture, fixtures and electrical fittings which are necessary for conducting the business activity for the assessee s business. But this is a case of simple letting out the building premises. Therefore ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is to go out of business altogether or to come back and restart the same; (4) if only a few of the business assets are let out temporarily, while the assessee is carrying out his other business activities, then it is a case of exploiting the business assets otherwise than employing them for his own use for making profit for that business; but if the business never started or has started but ceased with no intention to be resumed, the assets also will cease to be business assets and the transaction will only be exploitation of property by an owner thereof, but not exploitation of business assets. 8. From the decision of the Hon. Supreme Court it is clear that no prescribed test can be laid down to ascertain whether the lease/rent r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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