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In the taxation of rental incomes the High Court of HP in (2023] 21 ITR-OL 624 (HP) held that the businessmen point of view is the critical of all the tests in the determination of the head under which the income would be chargeable viz., ‘Income from the house property’ or ‘Profits and gains from business or profession’.   

While stating that the object clause look is not the direct test the Court held a view that what matter most is the exclusivity of the income earned from rental. 

It thus held that the assets are held as business asset and not any asset simpliciter for exploitation purpose. 

Apparently in the absence of exclusivity the rentals are likely to fit into house property head only.  

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