Sec. 22 & 28 of Income Tax act, 1961 – Nature of income – Income from house property or business income - Intention of the Assessee is also a material circumstance and the objects of Association, the kind of services rendered clearly point out that the Income is from Business.

Facts: Whether the Tribunal was justified in holding that the assessee had exploited its property commercially by way of complex commercial activities and hence, the rental income received by the assessee to be taxable as income from business and not under the head “Income from House Property’?

Held, that the object of assessee is clearly to acquire, develop, let out the commercial complex. It is clear from the objects with which the assessee was incorporated to derive income from running and maintaining the shopping mall.Intention of the Assessee is also a material circumstance and the objects of Association, the kind of services rendered clearly point out that the Income is from Business. All the factors cumulatively taken demonstrate that the assessee had intended to enter into a Business of renting out commercial space to interested parties – PR. CIT Vs. CITY CENTRE MALL NASHIK PVT. LTD. [2020] 424 ITR 085 (BOM)