The ITAT Delhi ruled on the correct classification of income ...

Lease of property with substantial infrastructure is business income, not rental income. AO erred in changing head of income.

Case Laws Income Tax

May 31, 2024

The ITAT Delhi ruled on the correct classification of income from property lease - whether as rental income, business income, or other sources. The lease agreement included not only the building but also substantial infrastructure and amenities, indicating a commercial asset lease. The user accepted possession of the entire building with services provided, showing a business intent. Tax authorities erred in reclassifying income as rental, leading to disallowed expenses and depreciation. The appeals were allowed, emphasizing the commercial nature of the arrangement.

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The ITAT Delhi ruled on the correct classification of income ...

Lease of property with substantial infrastructure is business income, not rental income. AO erred in changing head of income.

Case Laws Income Tax

May 31, 2024

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