1

Commissioner (A) is not empowered to enhance income a new source of income vide 82ITR 9Trib) 176
1

It is assessee’s choice to select a method for determining FMV of shares vide 81 ITR (Trib) (SN) 78
1

No TP adjustment of trade receivables in case of a debt-free company vide 81ITR (Trib) (SN) 94
1

To accord registration as a charitable institution under income tax dominant purpose must be charitable and satisfies the conditions laid down us 2(15) vide 426ITR108 despite having non charitable ancillary objects meant to achieve the dominant purpose
1

Transactions with dubious entities is reason enough for case reopening vide 421ITR624

Businessmen point of view is key to the determination of head of income

ByCA Gopal Nathani

Apr 29, 2023

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.