Specified regulatory authority income receives conditional tax exemption, subject to non-commercial activity, unchanged income character, and return f...
Tax exemption for regulatory authority income applies retrospectively, subject to non-commercial activity, unchanged income sources, and return-filing...
Input tax credit conditions remain constitutionally valid, with eligible recipient claims considered under GST circulars and retrospective filing dead...
Bogus donation receipts justified commission income assessment and defeated political-party tax exemption for inaccurate accounts and reporting failur...
Pure reimbursement without income element escapes tax withholding, while delayed withholding and unsupported provisions face deferred or renewed scrut...
Public benefit requirement defeats charitable registration where residents' association services are reciprocal, member-only facilities governed by mu...
The High Court held that rent income derived from letting out properties by the assessee should be treated as 'Income from Profits and Gains of Business' and not 'Income from House Property'. The key considerations were: the assessee's main objective as per the Memorandum of Association was to earn income from letting out properties, making it the principal business activity; the nature of activity and operations, not merely ownership of properties, determines the head of income; the income was derived from the assessee's main business of letting out properties. The Court distinguished situations where property income is incidental to the main business. Following the Supreme Court's decision in Chennai Properties, the Court held that the Tribunal erred in treating the rent income as 'Income from House Property' instead of 'Income from Profits and Gains of Business'. Consequently, the appeals were allowed in favor of the assessee.
The High Court held that rent income derived from letting out properties by the assessee should be treated as 'Income from Profits and Gains of Business' and not 'Income from House Property'. The key considerations were: the assessee's main objective as per the Memorandum of Association was to earn income from letting out properties, making it the principal business activity; the nature of activity and operations, not merely ownership of properties, determines the head of income; the income was derived from the assessee's main business of letting out properties. The Court distinguished situations where property income is incidental to the main business. Following the Supreme Court's decision in Chennai Properties, the Court held that the Tribunal erred in treating the rent income as 'Income from House Property' instead of 'Income from Profits and Gains of Business'. Consequently, the appeals were allowed in favor of the assessee.
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