Rental income from business of letting out of commercial property would be treated as business receipt

Section 28(i), read with section 22, of the Income-tax Act, 1961 - Business income - Chargeable as (Rental income) - Assessment year 2008-09 - Assessee-Corporation had primarily been set up for purpose of acquiring and building godowns and warehouses and letting them out for storage of certain notified commodities - Some of warehouses had been taken on rent and let out to companies/farmers for storage purposes - Whether since activity of letting out was a part of assessee's business, income therefrom would be assessable as business income and not as income from house property - Held, yes [Para 4] [In favour of assessee]

Refer:[2014] 44 taxmann.com 205 (Karnataka)

HIGH COURT OF KARNATAKA
Commissioner of Income-tax
v.
Karnataka State Warehousing Corporation