Dismissing the appeal the Court held that the assessee diversified and added its business line for the development of real estate of a particular type, namely software companies even though the name of the company continued to remain KMPL. The main business activity of the company from its motor business had been diversified into developing special kinds of property and earning lease rental income as its main business income. By no stretch of imagination, could a software park developed with the special facilities and amenities for software companies, be described or believed to be a property created for earning rental income as income from house property. The income was assessable as business income.

Obiter dicta : The tendency of the Revenue authorities not to follow the judgments of superior constitutional courts deserves to be strongly deprecated by imposition of suitable costs on them.( AY.2010-11, 2011-12)