2013 (9) TMI 1218

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....ncome from House Property' or 'Income from Business'. 3. The assessee is a company registered under the provisions of Companies Act, 1956 and is operating Industrial Technology Park. The assessee filed its return of income for the AY. 2009-10 on 30-09-2009 declaring its income as ₹ 5,01,572/-. The case of the assessee was selected for scrutiny and notice u/s. 143(2) of the Income Tax Act, 1961 (herein after referred to as 'the Act') was issued to the assessee on 20-08-2010. During the assessment year under reference, the assessee received an income of ₹ 13,13,56,212/- from IT Park/Convention Centre, ₹ 60,42,750/- from Software Exports and ₹ 5,62,678/- from other sources. The assessee treated the rental income from l....

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.... Case (Appeal) Nos. 139 to 145 of 2012 wherein similar issue has been adjudicated. The Hon'ble Madras High Court held that income from letting out to IT Park is assessable under the head 'Income from Business. In order to give more force to his submission the ld. Counsel further relied on the judgment of the Hon'ble Madras High Court in the case of CIT Vs. Elnet Technologies Ltd., reported as 213 Taxman 129. 5. On the other hand, Shri Suneel Verma appearing on behalf of the Revenue relied on the order of CIT(Appeals). 6. We have heard the submissions made by the representatives of both the sides and have perused the orders of the authorities below as well as the judgment of the Hon'ble Madras High Court in Tax Case (Appeal) Nos. 139 to 14....

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....dmittedly the assessee had made the application for development of an industrial park under the scheme notified by the Government in accordance with law. The Commissioner of Income Tax (Appeals) further pointed out that the scheme recognised the activity of any undertaking engaged in the development of infrastructure facilities or built up space with common facilities in any area allotted or earmarked for the purpose of software development as industrial park as business activity. Thus, while agreeing with the assessee on the character of the receipt of lease rental as business income, he also agreed in principle that the deduction under Section 80IA would be allowed, even if the rental income is assessed as income from house property. Furt....