Business income treatment for software technology park rentals with facilities confirmed under settled tax position.

Receipts from letting out property together with facilities in a software technology park are to be assessed as business income, not as income from house property. The note states that this position follows an earlier Division Bench ruling on the same question and aligns with CBDT Circular No. 16 of 2017, reflecting the settled treatment of industrial park and SEZ premises let out with associated facilities. The issue was therefore answered in favour of the assessee and against the Revenue.

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Issues: Whether the income derived from letting out property along with facilities in a software technology park is assessable as business income.

Analysis: The appeal was disposed of by following the earlier Division Bench decision on the same legal question. It was noted that, in light of CBDT Circular No. 16 of 2017 and the settled position regarding industrial park and SEZ premises let out with facilities, such receipts are to be assessed under the head of business income rather than as income from house property.

Conclusion: The question was answered against the Revenue and in favour of the assessee.

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