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Compensation Received from Let Out of Terrace Antenna and Hall Booking is Taxable as Business Income

In Knight Raj Properties P Ltd vs. ITO, the Mumbai ITAT held that that assessee’s receipts such as compensation received from let out of terrace antenna and hall booking should be taxable under the head business Income. 

The assessee, in the instant case, engaged in the business of letting premises in which filed its e-return processed under section 143(1) of the Income Tax Act. However, during the proceedings, AO noted that assessee received rental income and the same has been credited in Profit and loss account and also assessee has claimed expenditure of Rs.18,57,572/- against the same. The AO rejected the contention of AO to treat the same as income from house property and to allow standard deduction of 30%. 

The Assessing Officer did not accept the contention of the assessee and taxed the income received from terrace antenna and hall booking under the head “Income from Other Sources”. Aggrieved by the same assessee approached CIT (A) therein first appellate authority rejected the grounds raised by Assessee and uphold the AO’s decision.

Article referred: http://www.taxscan.in/compensation-received-let-out-terrace-antenna-hall-booking-taxable-business-income-itat/17921/

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