The appellant-assessee, a private limited company, was having house property, which had been rented and the assessee was receiving income from the said property by way of rent.
The main issue in all these appeals was whether the income so received would be taxed under the head "Income from House Property" or "Profit and gains of business or profession".
It was submitted by the learned counsel that the issue involved in these appeals was no more res integra as the Court had decided in the case of Chennai Properties and Investments Ltd. v. Commissioner of Income Tax [2015] 373 ITR 673 (SC) that if an assessee is having his house property and by way of business he is giving the property on rent and if he is receiving rent from the said property as his business income, the said income, even if in the nature of rent, would be treated as "Business Income" because the assessee was having a business of renting his property and the rent which he received was in the nature of his business income.
The Court further observed that it was an admitted fact in the instant case that the assessee company had only one business and that was of leasing its property and earning rent therefrom.
Thus, in view of the law laid down by the Court in the case of Chennai Properties (supra) and looking at the facts of these appeals, it was held that the High court was not correct while deciding that the income of the assessee should be treated as Income from House Property.
For further reading, refer the attachment.
Further Reading