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TMI Blog2021 (11) TMI 531X X X X Extracts X X X X X X X X Extracts X X X X ..... income. The assessee obtained long-term lease of the property and sub-leased the same in a regular systematic manner with a view to earn rental income from such activities in a business-like manner. The perusal of financial statements would show that the assessee had obtained loans to procure the properties and business investments were mostly in the nature of various properties. Therefore, considering the facts of the case, the income was rightly offered as Business Income and the claim of the assessee, in this regard, was to be accepted. We order so. The Ld. AO is directed to recompute the income of the assessee in terms of this order. Resultantly, the appeal stand partly allowed. - ITA Nos.2267 to 2270/Chny/2019 - - - Dated:- 3-1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om House Property as against Business Income offered by the assessee. The Ld. AR advanced arguments and placed reliance on the decision of Hon ble Apex Court in M/s Chennai Properties Investment Pvt. Ltd. V/s CIT (373 ITR 673). The Ld. DR, on the other hand, supported the assessment framed by Ld.AO. Having heard rival submissions, our adjudication would be as under. 4. The material facts are that the assessee being resident individual obtained a property situated at Manish Market, Chennai on lease for a period of 27 years and sub-leased the same to various persons. The lease income thus earned was offered as business income and various expenses were claimed against the receipts. However, since the lease was for a period exceeding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ieved, the assessee is in further appeal before us. 7. Upon due consideration of material fact, we find that the property under consideration was obtained by the assessee on long term lease basis and it was sub-leased to various tenants. The income thus earned was offered as business income . The main object of sub-leasing was to exploit the property in a business-like manner and earn the rental income therefrom. It is also evident that the assessee and his associated entities had business interest in real estate development. As held by Hon ble Supreme Court in the case of Raj Dadarkar Associates V/s ACIT (81 Taxmann.com 193) , there may be instances where a particular income may appear to fall in more than one head. On the facts of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... find out whether the letting was the doing of a business or the exploitation of his property by an owner. It is to be seen as to whether the activity in question was in the nature of business by which it could be said that income received by the appellant was to be treated as income from the business. In the decision of Hon ble Supreme Court in Chennai Properties Investments Ltd. (373 ITR 673), the entire income of the assessee was through letting out of the properties it owned and there was no other income of the assessee except the income from letting out of the said properties, which was the business of the assessee. Accordingly, the claim of the assessee as business income was accepted by Hon ble Apex Court in Chennai Properties ..... X X X X Extracts X X X X X X X X Extracts X X X X
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