ACIT - 24(1), MUMBAI vs. AKRUTISMC JOINT VENTURE, MUMBAI

ITA 8849/MUM/2025Status: DisposedITAT Mumbai01 June 2026AY 2018-198 pages
AI SummaryDismissed

What were the facts?

The assessee, a joint venture, developed a commercial complex on MSRTC land and leased out commercial spaces for 30 years, receiving rental income. The Assessing Officer treated this rental income as 'Income from House Property', while the assessee claimed it as 'Business Income'.

What did the Tribunal hold?

The Tribunal held that the income from leasing the commercial complex is to be taxed under the head 'business income' and not 'income from house property'. This decision was based on the assessee's agreement and its business of commercial exploitation of the property.

What were the issues?

Whether rental income from a commercially exploited property developed under a long-term lease agreement should be taxed as 'Income from House Property' or 'Business Income'.

Which sections of the Income-tax Act were involved?

Section 22,Section 23,Section 24,Section 27(iiib)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH MUMBAI

PER KAVITHA RAJAGOPAL :- This appeal is filed by the Revenue challenging the order of the Learned

Commissioner of Income Tax (Appeals) [‘Ld. CIT(A)’ for short], National Faceless

Appeal Centre (“NFAC” for short)passed u/s. 250 of the Income Tax Act, 1961 (‘the Act'), pertaining to the Assessment Year (‘A.Y.’ for short) 2018-19. 2. The Revenue has challenged the following grounds of Appeal.

“1.Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in directing the deletion of the entire addition of Rs. 9,94,49,213, by treating lease rentals and related receipts from the commercial complex constructed on MSRTC land as Profits and Gains of Business or Profession, instead of

The order continues below.

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