Assessee-company, incorporated on 27-9-1996, purchased a land in financial year 1996-1997, commencing construction.\u00a0 Built-up property, a commercial building, was let out to tenants in financial year 1999-2000 and, accordingly, rental income was disclosed in return since assessment year 2000-2001 as income from house property (IFHP). Assessing Officer assessed it as income from business and professions.\u00a0 CIT (A) ssessed the income as income for house property.\u00a0 On appeal the Tribunal held that\u00a0 the\u00a0 assessee is\u00a0 engaged in a continuous and systematic activity of business in real estate development, of which leasing and sale is\u00a0 an integral and a regular part. In each case, sum realized, as indeed rent received over years, was, after meeting expenses, ploughed back in business, purchasing and constructing landed property for being, similarly, either sold at a profit or leasing it.\u00a0 On facts the\u00a0 Assessing Officer is\u00a0 justified in assessing capital gains and income from house property as business income. (AY. 2012-13 , 2015-16)\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 28(i) : Business income-Income from house property-Business of real estate development-Sale of commercial building let out to tenants earlier-Assessing the capital gains and income from house property as business income by the Assessing Officer is affirmed. [S. 22, 23, 45]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-44507","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-bzR","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/44507","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=44507"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/44507\/revisions"}],"predecessor-version":[{"id":44508,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/44507\/revisions\/44508"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=44507"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=44507"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=44507"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}