Ita/228/2002 Of M/S.vichithra Commercial Complex v. Commissioner Of Incometax

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE T.R.RAMACHANDRAN NAIR WEDNESDAY, THE 27TH FEBRUARY 2008 / 8TH PHALGUNA 1929 ITA.No. 228 of 2002() --------------------- ITA.412/CO/1996 of I.T.A.TRIBUNAL,COCHIN BENCH .................... APPELLANT/APPELLANT/ASSESSEE --------------------------------------------- M/S. VICHITHRA COMMERCIAL COMPLEX-A, NEAR CIVIL STATION, CALICUT, REPRESENTED BY ITS MANAGING PARTNER K.P.DIVAKARAN. BY ADV. SRI.C.KOCHUNNY NAIR SRI.DALE P.KURIEN RESPONDENTS: RESPONDENTS/REVENUE -------------------------------- THE COMMISSIONER OF INCOME-TAX, CALICUT. BY ADV. SRI.P.K.R.MENON(SR.),SR.COUNSEL FOR IT FOR R SRI.GEORGE K. GEORGE, SC FOR IT FOR R THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 27/02/2008, THE COURT ON 27/02/2008 DELIVERED THE FOLLOWING: C.N.RAMACHANDRAN NAIR &T.R.RAMACHANDRAN NAIR, JJ. .................................................................... ....................................................................Dated this the 27th day of February, 2008. JUDGMENT C.N.Ramachandran Nair, J. Heard counsel for the appellant and Standing Counsel for the respondent. The question raised is whether the rental income received bythe assessee from shopping complex is assessable as income from houseproperty or as business income. All the three authorities below found thatassessee was engaged in letting out of the building to another person whowas carrying on business of running lodge in the building. Obviouslybusiness is carried on by the lessee and not by the assessee who has only letout the building on fixed rent. We are in agreement with the order of thefirst appellate authority confirmed by the Tribunal that income at the handsof the assessee is only income from house property and not businessincome. The appeal, therefore, fails and is dismissed. C.N.RAMACHANDRAN NAIRJudge T.R.RAMACHANDRAN NAIRJudge