TaxTMI 
TaxTMI 
2020 (1) TMI 872
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....cts and in the circumstance of the case and in law, the Hon'ble Tribunal was justified in ignoring the settled position of law that where the main contention is to simply let out property or any part of it, the resultant income must be assessed as income from house property and the amenities such as electricity, cooling towers, elevators and car parking provided by the assessee to its tenants were incidental to the letting out of the property and could not be termed as complex commercial activities to justify the assessment of rental income as income from business ? (C) Whether, on the facts and in the circumstance of the case and in law, the Hon'ble Tribunal was justified in directing the assessing officer to decide the issue of disallowance of unpaid service tax under Section 43B of the Income Tax Act by following the decision rendered by Hon'ble Bombay High Court in the case of Ovira Logistrics Pvt. Ltd. (ITA No.1023 of 2013 dated 17 April 2015) without appreciating that Department has not filed SLP owing to tax effect being lower than the prescribed monetary limit for filing further appeal?" 3. The questions of law No. (A) and (B) are overlapping and relate to the n....
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....e under the head Income from Business. The Assessing Officer, however, treated the same as Income from House Property. The Respondent - Assessee filed an appeal before the Commissioner of Income Tax (Appeals). The Commissioner of Income Tax (Appeals) by order dated 27 January 2015 dismissed the Appeal. Thereafter, the assessee filed an Income Tax Appeal before Tribunal, which has been allowed by the impugned order. 7. We have heard Mr. Malhotra, learned counsel appearing for the Appellant and Mr. S. Sriram, learned counsel appearing for the Respondent. 8. Mr. Malhotra, learned counsel for the Appellant firstly submitted that a detailed order was passed by the Commissioner of Income Tax (Appeals) considering all facts, however, the decision of the Tribunal is not a reasoned one. Secondly, he submitted that the Respondent - Assessee has shown income of Rs. 1,23,41,567/- which clearly indicates that the Respondent - Assessee has other source of income and therefore, decision in the case of Chennai Properties and Investments Ltd. v. Commissioner of Income-Tax - [2015] 373 ITR 673 (SC) which is foundation relied upon, thereafter, cannot be applied. He submitted that in the case of....
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....e. In the facts of the case it is not necessary for us to comment on the absolute proposition advanced by Mr. Malhotra that it is only in those circumstances when the entire income is arising out of the commercial complex that it can be considered as income from the business and no other source of income must exist. We find that the dividend income in the present case is from the deposits received from the licensees which was invested in the Mutual Fund and the amount is not substantial as contended. 11. Turning now to the third contention of Mr. Malhotra. The question as to whether a income is to be treated from Business or from House Property comes up consideration of the Court's often. In the case of Principal Commissioner of Income Tax- 6, Pune v. Krome Planet Interiors (P.) Ltd. [2019] 107 taxmann.com 443 (Bombay), the Court considered the case in identical facts of a commercial complex and mall. The Court took into consideration the various facilities provided by the assessee therein. The facilities were : lightening arrangement, installation of water cooled split Air conditioners, elevators, security system, fire prevention, garbage collection and disposal system, dini....
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....hrs Mall Security Services, Housekeeping services, gardening, pest control for the common area of the mall. b) Maintenance & regular cleaning of the common areas of the mall & elevation of the building, exterior and interior cleaning of the mall, landscaping, providing and maintaining wash rooms & toilets, garbage removal & disposal from the common area etc. c) Lightening of the common areas & Power supply through 100% power back up. d) Air conditioning of common area. e) Regular repair & maintenance of lifts, escalators, air conditioning plants, generators pumps & other plant & machinery. f) Marketing & Promotional activities of the mall in general. g) Providing space for Advertising in the mall premises at various places in the mall. h) Organizing various events & programmers at regular intervals & at the time of festivals to promote the foot fall in the mall. i) Providing & maintaining common parking facilities. j) Providing assistance in market survey, customer complaints etc. to the occupants. k) Providing piped music in the mall. l) Fire detection & protection system in the comm....