Income from canteen license fees taxed as house property income for 2014-15

The Tribunal allowed the revenue's appeal, affirming that income from license fees of the canteen should be taxed under the head of income from house property for the assessment year 2014-15, in line with previous decisions.

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Issues:
1. Treatment of income from license fees of canteen as business income.

Analysis:
The appeal in question pertains to the assessment year 2014-15, originating from the CIT(A)-6, Ahmedabad's order under section 143(3) of the Income Tax Act, 1961. The revenue's appeal challenges the decision of the CIT(A) in categorizing the income from license fees of the canteen as business income.

During the appellate proceedings, it was highlighted that a similar issue had been addressed by the Co-ordinate Bench of the ITAT in the preceding assessment years of 2012-13 and 2013-14. The Co-ordinate Bench had ruled that rental income from license fees of the canteen should be taxed under the head of income from house property. The counsel representing the revenue accepted this fact, acknowledging that the issue had been decided in favor of the revenue in previous instances.

The decision of the Co-ordinate Bench was cited, emphasizing that the rental income from license fees of the canteen should be treated as taxable under the head of income from house property. The Tribunal upheld the Assessing Officer's grievance based on the previous rulings and declined to entertain the claim of the assessee, ultimately allowing the revenue's appeal.

In conclusion, the Tribunal concurred with the Co-ordinate Bench's findings in previous cases, establishing that the rental income from license fees of the canteen falls under the category of income from house property. Therefore, the revenue's appeal was allowed, affirming the treatment of the income in question as taxable under the head of income from house property for the relevant assessment year of 2014-15.

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