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Whether on the facts and circumstances of thecasethe assessee is entitled to deduction u/s.80IA (4)(iii) on rental income and lease rent income of the industrial park which is mean for I.T. industries?

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Section 22 & 28 read with section 80IA of the Income Tax Act, 1961—Nature of Income — Income from house property or business income - Income derived from letting out of property to tenant for the purpose of running technological park is income from business and not income from house property

Facts: Whether Tribunal was right in holding that the income derived from letting out of property to tenant for the purpose of running technological park is income from business and not income from house property?” and Whether assessee is entitled to deduction u/s.80IA (4)(iii) on rental income and lease rent income of the industrial park which is mean for I.T. industries?”

Held, that assessee has not only shown part of its income as income from other property, but has only allowed the claim of Assessee to tax the income from the software companies in the form of lease rentals from Olympia Tech Park as income from business and thereupon allowing this deduction under Section 80IA which is allowed only if the income from business is taxed under the head “Income from business” at the hands of the Assessee. Assessee diversified and added its business line for the development of real estate of particular type, namely software companies and even though the name of the company continue to remain. The burden of the argument of the learned counsel for the Revenue, perhaps emanated from only the name of the company, forgetting that the main business activity of the company from its motor business had been diversified into developing a special kinds of property and earning lease rental income as its main business income. By no stretch of imagination, could a software park developed with the special facilities and amenities for software companies, be earning rental income as income from house property. Appeal of revenue is dismissed. - CIT V/s TIDEL PARK LTD. - [2020] 28 ITCD Online 005 (MAD)