Assessee continuing lease agreement and renewing it every year. The assessee claimed the income from lease as business income. the assessing Officer treated the income from other sources. Appellate Tribunal affirmed the view of the Assessing Officer. On appeal the High Court affirmed the order of the Tribunal and held that lease rental was rightly assessed as income from other sources. The court observed that the assessee exploited the property and not exploitation of business assets. Relied on Universal Plast Ltd v. CIT (1999) 237 ITR 454 (SC). Claim of quality loss was not allowed as there was no business was carried on during the relevant years. (AY.2004-05 to 2009-10)
PTL Enterprises Ltd. v. Dy. CIT (2021) 439 ITR 365/( 2022) 212 DTR 404 / 326 CTR 282 (Ker.)(HC).Editorial : Affirmed in PTL Enterprises Ltd. v. Dy. CIT( 2022) 443 ITR 260 (SC)
S. 28(i) : Business income-Income from lease-Exploitation of property and not exploitation of business assets-Assessable as income from other sources-Quality loss-No business carried on-Not allowable as deduction. [S. 2(14), 56]