Back
G. S. KULKARNI, FIRDOSH P. POONIWALLA
National Leasing Limited – Appellant
Versus
Assistant Commissioner of Income – Respondent
JUDGMENT :
(Per G. S. Kulkarni, J.)
1. This batch of appeals under Section 260A of the Income Tax Act 1961, filed by the common appellant are directed against orders passed by the Income Tax Appellate Tribunal (for short ‘the Tribunal’). The question of law which arises for consideration in these appeals, is whether the rent income derived by the appellant (for short ‘the assessee’) from its properties was assessable under the head ‘Income from house property’ or as claimed by the assessee under the head ‘Income from Profits and Gains of Profession or Business’.
2. The nine assessment years in question relevant to each of these appeals and the date of the impugned orders passed by the Tribunal are as follows:-
| Sr.N o. | Income Tax Appeal No. | Assessment Year with regard to which the Appeal is filed | Impugned Order passed by the Appellate Tribunal |
| 1. | ITXA/686/2007 | 1989-1990 | Dt. 22/02/2006 Assessed it as “income from house property” |
| 2 | ITXA/558/2007 | 1990-1991 | Dt. 22/02/2006 Assessed it as “income from house property” |
| 3 | ITXA/559 /2007 | 1991-1992 | Dt.22/02/2006 Asessed it as “income from house property” |
|
| |||
Rental income from properties should be classified as business income when leasing is the primary business activity of the assessee.
Rental income from properties should be classified as 'income from profits and gains of business' when leasing is the primary business objective of the assessee.
Profit on the sale of land is classified as capital gains, not business profits, based on the nature and conduct of the transactions rather than tax treatment or entries in accounts.
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
