Dcit, Circle - 7(1), Kolkata, Kolkata vs M/S. Ganesh Realty & Mall Development ... on 22 July, 2019
this case. Hon'ble Supreme Court has held that if one of the main
objects of company is letting out of properties, then this activity
would be considered as business activity. This judgment clearly
supports the stand of the assessee. Hence, there is no need for any
contrary interpretation of this issue. In assessee's case letting out
of property along with sale of commercial property, is included in
the main objects of the company. Hence, AO is directed to assess
the receipts from letting out of property under the head 'Income
from Business'. Further, appellant has mentioned that letting out
of property and providing utility services are complementary to
each other. Hence, both these activities are business activities.
This view is also supported by the decision of Kolkata ITAT in
Mangalam Fashion Ltd. (Supra). In view of the judgment of the
Hon'ble Supreme Court and the decision of Kolkata ITAT, as
mentioned in above, AO is directed to assess license fees and
utility charges as income under the head business and profession.
As letting of the buildings are held as business activity,
consequentially, AO is also directed to allow depreciation of Rs.
8,04,49,959/- on these buildings. These grounds are allowed."