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Issues: Whether the consideration received from granting shopping space on sub-licence, together with service and facility charges, was assessable as income from house property or as business income, and whether the assessee could be treated as an owner or deemed owner for the purpose of section 22.
Analysis: The agreement was in substance a leave and licence arrangement, not a lease, and did not create any interest in the property in favour of the assessee. The licensor retained control, while the assessee only had a licence to use the shopping area and to grant sub-licences. Applying the distinction between lease and licence, the assessee was not an owner and the deeming provision concerning transfers in relation to immovable property did not apply on the facts. The assessee's memorandum of association, the nature of the activity, and the recurring charges for space, services, and facilities showed a systematic commercial activity undertaken in the ordinary course of business.
Conclusion: The receipts from sub-licensing the shopping space were not assessable as income from house property; they were assessable as business income. The assessee succeeded on the principal issue.
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