TaxTMI 
TaxTMI 
2021 (4) TMI 745
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....ncome Tax Appellate Tribunal, Chennai, 'C' Bench ('the Tribunal' for brevity) respectively for the assessment years 2009-10 and 2012-13. 2. The Revenue has filed these appeals by raising the following substantial question of law : "Whether, on the facts and circumstances of the case and in law, the Income Tax Appellate Tribunal is correct in holding that the rental income received by the assessee by letting out properties is to be assessed under the head 'income from other sources' and not under the head 'income from house property' for the assessment years 2009-10 and 2012-13 ?" 3. We have heard Mr.Karthik Ranganathan, learned Standing Counsel appearing for the appellant - Revenue and Ms.N.V.Lakshmi, lea....
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....nder that head mainly if such income is earned out of idle property, which could earn the rental income by user thereof from the lessees. But, where the income from the same property in the form of lease rentals is the main source of business of the Assessee, which has its business exclusively or substantially in the form of earning of the rentals only from the Business Assets in the form of such landed properties, then, in our opinion, the more appropriate Head of Income applicable in such cases would be "Income from Business". 18. A bare perusal of the Scheme of the Income Tax Act, 1961, would reveal that while computing the taxable income under the Head "Income from business or profession", the various deductions, including the actual ....
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....essees, could be taxed as "Income from House Property", ignoring the fact that that such rentals were the only source of "Business Income" of the Assessee, the Authorities below have fallen into the error in holding that the income was taxable under the Head Income from house property. The said application of the Head of Income by the Authorities below was not only against the facts and evidence available on record, but against the common sense itself. 20. The amended definition under Section 22 of the Income Tax Act, 1961, now defines the "Income from House Property"; as the annual value of property, as determined under Section 23 of the Act, consisting of buildings or lands appurtenant thereto of which the assessee is the owner, other t....
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....business, compels us to come to the conclusion that the present appeals of the Assessees are required to be allowed. The same are accordingly allowed and the question of law framed above is answered in favour of the Assessee and against the Revenue. No costs.' 6. Though the learned counsel for the Revenue Mr.Karthik Ranganathan, sought to urge before us that the development of I.T. Park was not the main business activity of the Assessee company, he failed to establish his contention with the help of any relevant evidence, including the memorandum of association of the company or any other relevant documents. 7. On the contrary, we found from the discussion in the order of the Commissioner of Income Tax (Appeals) as well as the learn....
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.... income as income from house property. The Tribunal not only relied upon an earlier decision of Madras High Court in the case of CIT v. Elnet Technologies Ltd. [(2012) 213 Taxman 129], but also having considered all these aspects in great detail, the Division Bench of this Court to which one of us (VKJ) was a member, in M/s. PSTS Heavy Lift and Shift Ltd., had clearly held that where the main business of the company is to earn rental income as its business income, the income would be taxable under the head "Income" entitling the petitioner Assessee to have the deductions of notional expenses like depreciation and special deductions like Section 80IA etc. 9. It appears that just to take a contrary view in favour of the Revenue, the authori....