TaxTMI 
TaxTMI 
TaxTMI 
2020 (1) TMI 872
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....- "(A) Whether, on the facts and in the circumstance of the case and in law, the Hon'ble Tribunal was justified in holding that the assessee had exploited its property commercially by way of complex commercial activities and hence, the rental income received by the assessee to be taxable as income from business and not under the head "Income from House Property' ? (B) Whether, on the facts 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 p....
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.... v. Knight Frank (India) (P.) Ltd. - [2016] 72 taxmann.com 300 (Bombay). The SLP filed by Revenue against decision in Tops Security Ltd. (supra) is dismissed by the Supreme Court on 19 March 2019. Hence this question is answered against Appellant - Revenue. 5. For the questions No. (A) and (B), a brief narration of the facts would be necessary. The Respondent - Assessee is a private limited company incorporated with an object of construction and running of commercial and shopping malls. The Respondent - Assessee set up a commercial complex-cum-shopping mall and the operations commenced during the financial year 2009-10. According to the Respondent - Assessee the total project cost was from its own funds and loan facilities. The mall / com....
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....ondent. 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 Chennai Properties (supra), the Court was considered the fact situation whether the entire income was fro....
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....ous factual premise. Mr. Sriram, learned counsel for the Respondent - Assessee pointed out that a typographical error has occurred in the assessment order wherein dividend income is shown as Rs. 1,23,41,567/-. He has pointed out from the compilation of the documents which was before the Tribunal, more particularly the balance-sheet wherein other income is referred to as Rs. 17,25,740/-. He pointed out that these amounts were the deposits received from the persons to whom the premises were let out in the mall and the same was invested in the Mutual Fund and this dividend and the interest thereupon and the profit of sale of the Mutual Fund constituted the amount of Rs. 17,25,740/-. He submitted that income cannot be considered as an independe....
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....he Court also referred to the decision in the case of Raj Dadarkar & Associates v. Assistant Commissioner of Income-tax, CC-46 [2017] 81 taxmann.com 193 (SC). 12. In the matter at hand, the object of the Respondent - Assess is clearly to acquire, develop, let out the commercial complex. It is clear from the objects with which the assessee was incorporated to derive income from running and maintaining the shopping mall. The relevant objects as per Memorandum of Association are as follows : "(A) Main Object of the Company as per Memorandum of Association :- Object No.1 :- To acquire by purchase, exchange or otherwise deal in land, estates, building, halls, dwelling houses ....... and to do various types of construction of buildings, comm....
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....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....