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In 249ITR47 the assessee had let out the tablespace to various persons with all furniture, fixtures, light, air conditioners. The income from rent was offered under the head business. The assessing officer assessed such income under the head income from house property.


The Calcutta High Court found that the primary object of such letting, in this case, was to let out the property and not to exploit the property by way of complex commercial activities in which event it may be held to be business income. In this case, there was also a finding that the assessee had collected almost the entire cost of the property by way of security deposit/advances from the occupiers. This decision is affirmed by the SC in 263ITR143.


Many companies such as WeWork etc. provide flexible shared workspaces and move-in ready office space with access to shared meeting rooms, common areas, and premium amenities. Such arrangements may have to be read against this adverse ruling of the Kolkata High Court.

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