Law:

Section:

Section 28(i), read with section 22, of the Income-tax Act, 1961 - Business income - Chargeable as - Assessment years 1990-91 to 1994-95 - Assessee took property on lease with idea of building a business centre thereon- Assessee constructed a building and gave different portions thereof on rent to third parties and treated rent as services charges under head income from business and profession - However, Assessing Officer treated said receipt as income from house property - On appeal, Commissioner (Appeals) found that assessee had not only given space to its tenants but had also provided various facilities like secretarial services, phone, fax and other services and that whole object of constructing office premises was that facilities were provided with building - Commissioner (Appeals), accordingly, set aside order of Assessing Officer and treated said receipt as income from business and profession - On appeal, Tribunal upheld order of Commissioner (Appeals) - Whether no question of law arose from order of Tribunal for consideration of High Court - Held, yes FACTS One 'K' was having leasehold interest in certain property. The assessee-company took the said property on lease. The assessee constructed a building on the land with the idea of having a business centre and gave different portions of the building on rent to third parties and treated rent as service charges under the head 'Income from business and profession'. During the course of assessment proceedings, the Assessing Officer asked the assessee to show cause as to why the rent received from the tenants be not treated as income under the head 'Income from house property'. The assessee explained that the building was developed as a business centre for giving services to the third parties such as secretarial services facility, phone, fax and other services and, therefore, the income from the said building could not be treated as income from house property. The Assessing Officer examined the accounts of the assessee and found that no electricity expenses had been claimed in the profit and loss account and that the services rendered could not be provided without electricity. He was, therefore, of the view…

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