Income: Business income or house property income: S/s. 22 and 28(i) : A. Y. 1996-97: Assessee owned a shopping mall: Let out a portion of mall and used balance portion for its business: Rental income is business income and not house property income:

The assessee owned an immovable property, i.e., a shopping mall. During relevant year, assessee let out a portion of said mall. The assessee claimed that rental income derived from mall was taxable as income from business. The Assessing Officer rejected the claim and assessed the rental income under the head “Income from house property.” The Tribunal allowed the assessee’s claim.

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

“i) T he law is well settled that whether a particular letting is a business has to be decided in the circumstances of each case and each case has to be looked into from the businessman’s point of view to find out whether letting was the doing of business or exploitation of his property by an owner.

ii) There being categorical findings of fact by the appellate authority as well as the Tribunal that letting out was for the purposes of business after considering all relevant facts and the fact that the premises City Centre, the Mall, has been taken back by the assessee and further in major portion of the premises assessee was already carrying out his own business, it is opined that assessee has rightly shown his rental income as business income.”