M/s Rayala Corporation Pvt. Ltd. vs ACIT

TOPIC

Rental Income from Business

Facts of the Case

The appellant-assesse, a private limited company, is having house property, which has been rented and the assesse is receiving income from the said property by way of rent.

As per the assesse, it is in business of renting its properties and is receiving rent as its business income, the said income should be taxed under the Head “Profits and gains of business or profession” whereas the case of the Revenue is that as the income is arising from House Property, the said income must be taxed under the head “Income from House Property.

High court held that the rental income to be taxable under the head “Income from House Property”. Aggrieved assesse is in appeal before the Hon’ble Supreme Court

Question

Whether the income so received should be taxed under the head “Income from House Property” or taxed under the head of “Profit and gains of business or profession?

Subscribe to read the full Article.