M/s. Kenton Leisure Services, P. Ltd. Vs. DCIT (ITAT Cochin) – It was held that lease rental income arising from agreements for letting on lease hostel premises along with provision and maintenance of various facilities and amenities would be taxable under the head ‘Income from Business’ as against ‘Income from House Property’.The characterisation of lease rental income as ‘Income from Business’ comes as a relief to taxpayers who lease out property along with provision of facilities / amenities. However, this issue is fact specific and it would be important for taxpayers to bear the above principles in mind while determining the taxability of such revenue streams.
It would also be relevant to note that the Bangalore Tribunal in two recent rulings in the case of ITO v. Information Technology Park Ltd [2012-TIOL-01-ITAT-Bang] and DCIT v. Golflink Software Park P Ltd [2011-TIOL-660-ITAT-Bang] relied on their earlier decision in the case of Global Tech Park (P) Ltd’ and have held that lease rental income arising from a complex commercial activity which includes provision of space along with provision of facilities / amenities would be taxable under the head ‘Income from Business’ as against ‘Income from House Property’. The proposed Direct Taxes Code seeks to tax such lease rental income as ‘Income from House Property’ as against ‘Income from Business’ with a specific exclusion to developers of Special Economic Zones.
1 comment:
The Restaurant software is a windows based in-house application that can be easily installed and customized according to the administrator's need.The major advantage of hotel software is that it helps to save the processing time and provides enhanced room reservation and booking management.http://www.restaurant-pos-software.com/Products/HotelSoftware.aspx
Post a Comment