Taxability of Rental Income Received by Real Estate Developer : Business income or income from House Property

 Rental income received from unsold portion of property constructed by assessee a real estate developer, is assessable as income from house property

HIGH COURT OF BOMBAY

Commissioner of Income-tax-12, Mumbai

v.

Sane & Doshi Enterprises*

S.C. DHARMADHIKARI AND A.K. MENON, JJ.

IT APPEAL NOS. 375 OF 2013
& 5313,5592,6230,6232,6234 OF 2010, 1448 OF 2011
1504 OF 2012, 418 AND 675 OF 2013

APRIL  9, 2015 

Section 22, read with section 28(i), of the Income-tax Act, 1961 - Income from house property - Chargeable as (Business income v. House property income) - Whether rental income received from unsold portion of property constructed by assessee, a real estate developer, is assessable as income from house property and not business - Held, yes - Whether once it is held that income is derived from property, treatment given in books of account as stock-in-trade would not alter character or nature of income - Held, yes [Paras 22 & 25] [In favour of assessee]