Income from Leased Properties as Business Income Upheld; Interest Deduction on Share Application Money to Be Reviewed.

The HC dismissed the appellant's challenge regarding the classification of income from leased properties as business income, citing previous rulings and lack of substantial legal question. However, the HC admitted the issue of interest deduction on share application money as a substantial legal question, directing further proceedings by the Tribunal.

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Issues Involved:
1. Interpretation of income received from properties leased out as house property.
2. Allowance of interest deduction on share application money transaction.

Analysis:

Issue 1: Interpretation of income received from properties leased out as house property
The appellant challenged the Tribunal's order regarding the assessment of income received from properties leased out to various parties. The Tribunal had considered the income as business income based on previous decisions for the same assessee. The appellant contended that the income should be assessed as house property income since the company was the owner of the property. However, the High Court noted that the Revenue's appeals for the Assessment Years 2007-08, 2008-09, and 2009-10 had already been dismissed by the Court in a previous order dated 18 July 2017. Consequently, the Court held that the question raised did not present any substantial question of law and thus was not entertained.

Issue 2: Allowance of interest deduction on share application money transaction
The second question raised was regarding the allowance of interest deduction on share application money transaction. The Court admitted this question as it raised a substantial question of law. The order directed the Registry to provide a copy of the order to the Tribunal for further proceedings related to the appeal.

In summary, the High Court dismissed the first question concerning the interpretation of income received from leased properties based on previous decisions. However, the Court admitted the second question regarding the allowance of interest deduction on a share application money transaction for further consideration.

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