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February 2015

Business income or house property income- Ss. 22 and 28- A. Ys. 2005-06 to 2009-10- Rent from letting out buildings with amenities in software technology park is assessable as business income

By K. B. Bhujle Advocate
Reading Time 1 mins
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CIT vs. Information Technology Park Ltd.; 369 ITR 460 (Karn):

For the A. Ys. 2005-06 to 2009-10, the assessee had claimed that the rent received from letting out buildings along with other amenities in a software technology park as income from business. The Assessing Officer assessed it as income from house property. The Tribunal held that it constituted business income and accepted the assessee’s claim.

On appeal by the Revenue, the Karnataka High Court upheld the decision of the Tribunal and held as under:

“The assessee was engaged in the business of developing, operation and maintaining an industrial park and providing infrastructure facilities to different companies as its business. In view of that the lease rent was assessable as business income.”

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