https://www.taxtmi.com/caselaws?id=760610 Rent receipts from letting properties must be characterised by reference to the assessee's principal business activity; where the memorandum of association shows letting as the main object, rent is business income and not income from house property. The controlling legal test compares the nature of the activity and the company's main objective, not mere ownership of land or leases. Applying that test, rent derived from leased properties that constitute the assessee's principal business is assessable under profits and gains of business; accordingly the prior classification as income from house property was erroneous and reversed in favour of the assessee. en-us Mon, 21 Oct 2024 00:00:00 +0530 Tue, 10 Feb 2026 13:01:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=760610 Rent receipts from letting properties must be characterised by reference to the assessee's principal business activity; where the memorandum of association shows letting as the main object, rent is business income and not income from house property. The controlling legal test compares the nature of the activity and the company's main objective, not mere ownership of land or leases. Applying that test, rent derived from leased properties that constitute the assessee's principal business is assessable under profits and gains of business; accordingly the prior classification as income from house property was erroneous and reversed in favour of the assessee. Case-Laws Income Tax Mon, 21 Oct 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=760610