The Madras High Court ruled that the lease rent income received from letting out modules of Software Technology park to constitute income from the business, eligible for deduction
The Revenue assailed the order of the Income Tax Appellate Tribunal wherein it was held that the lease rent income received from letting out modules of Software Technology park to various lessees would constitute income from business and eligible for deduction under Section 80IA of the Act.
Mr.T.R.Senthil Kumar, Senior Standing Counsel appearing for the appellant/ Revenue submitted that the questions of law that arose for consideration in the above appeals were already decided against the Revenue and in favour of the assessee in the judgment dated 14.06.2021 made in T.C.A.No.16 of 2014 [The Commissioner of Income Tax wherein it was ruled that it was pointed out that income derived from letting out of the property with all amenities and facilities would be income from business and cannot be assessed either as income from house property or as income from other sources.
Mr.Vikram Vijayaraghavan, learned counsel appearing for the respondent/assessee submitted that in view of the judgment of the Division Bench of this Court made in T.C.A.No.16 of 2014, the appeals may be dismissed.
The division bench of Justice M.Duraiswamy and Justice R.Hemalatha while dismissing the appeal of the revenue relied on the case of T.C.A.No.16 of 2014 wherein it was ruled that in the case of an undertaking which develops, develops and operates or maintains and operates an industrial park/SEZ notified in accordance with the scheme framed and notified by the Government, the income from letting out the premises / developed space along with other facilities in an industrial park/SEZ is to be charged to tax under the head ‘Profits and Gains of Business.
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