Assessee declared its income under the head Income from Business. The AO however, treated the same as Income from House Property which was affirmed by the CIT (A) . Tribunal decided the issue in favour of the assessee. \u00a0On appeal before the High Court , question raised is \u201c \u00a0Whether, on the facts and in the circumstance of the case and in law, the Hon\u2019ble Tribunal was justified in holding that the assessee had exploited its property commercially by way of complex commercial activities and hence, the rental income received by the assessee to be taxable as income from business and not under the head \u201cIncome from House Property\u2019 ?\u201d \u00a0The Honourable Court considered the object clause of the company\u00a0 \u00a0and various services provided such as\u00a0 marketing and promotional activities and also organising various events and programs. \u00a0Court also noted \u00a0in the context of the revenue sharing agreement copies of which have been placed on record\u00a0 on which the revenue receives not only license fee of the amounts specified therein and percentage of net revenue. In some of the agreements the compensation is either license fee or percentage of net revenue, whichever is higher. \u00a0The Intention of the Assessee is also a material circumstance and the objects of Association, the kind of services rendered clearly point out that the Income is from Business. All the factors cumulatively taken demonstrate that the assessee had intended to enter into a Business of renting out commercial space to interested parties. The other income is only an income which is a dividend income from the deposits received from the Business income. \u00a0Therefore, considering all these factors which have been enumerated above and referred to by the Tribunal, the findings rendered by the Tribunal on assessment of the factual position before it that the income in question has to be treated as business Income . Referred Chennai Properties and Investments Ltd. v. CIT [2015] 373 ITR 673 (SC) \u00a0Raj Dadarkar , Associates v ACIT[2017] \u00a0394 ITR 592 \/81 taxmann.com 193 (SC) \u00a0PCIT v. Krome Planet Interiors (P.) Ltd \u00a0\u00a0[2019] 107 taxmann.com 443 \/ 265 Taxman 308 (Bom) (HC) .( \u00a0ITA\u00a0 No .1783\/Mum\/ 2015 dt.23-09 -2016 \u00a0\u00a0(ITA No . 1583 of\u00a0 2017 dt\u00a0 13-01 -2020) (AY.2010-11.) \u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"
S.28(i): Income from business \u2013 Income from house property \u2013 Exploitation of property commercially by way of complex commercial activities – Rental income is to be taxable as income from business \u2013 Not as Income from House Property. [ S.22 ] <\/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":[1],"tags":[],"class_list":["post-9395","post","type-post","status-publish","format-standard","hentry","category-digest"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-2rx","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/9395","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=9395"}],"version-history":[{"count":3,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/9395\/revisions"}],"predecessor-version":[{"id":20101,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/9395\/revisions\/20101"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=9395"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=9395"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=9395"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}