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In the instant case, CIT held that the Company's activity is of renting of premises and therefore, the income earned by it is to be faxed as income from house property. The assessee has claimed a business loss of 2,46,03,893/- which is denied by the A.O. holding that the project of the assessee is still under construction during the year and. therefore, the loss could not be allowed. Held that—In similar circumstances, Hon’ble Supreme Court in the matter of Chennai Properties & Investments Ltd. [2015] [SUPREME COURT] decided matter in favor of the assessee holding that income from renting a property of Mall to be treated as business income and in those circumstances, appellant case is fully covered by the aforesaid judgment. ITAT Bench of Mumbai in the matter of Hagwood Commercial Developers Pvt. Ltd.[2017 (2) TMI 626 - ITAT MUMBAI] has also given finding in favor of assessee. To the effect that even if Mall had not commenced business till end of relevant year, assessee had rightly debited general overhead expenses being indirect expenses incurred, in profit and loss account. Thus, we are considered opinion, that in assessee’s case, the income from renting a properties in Mall to be taxed as business income and not income from house property as well as business loss also to be allowed. - Decided in favor of assessee.

Shanti Prime Publication Pvt. Ltd.

Section 22, 28, 37 of Income Tax Act, 1961— Nature of Income— In the instant case, CIT held that the Company's activity is of renting of premises and therefore, the income earned by it is to be faxed as income from house property. The assessee has claimed a business loss of 2,46,03,893/- which is denied by the A.O. holding that the project of the assessee is still under construction during the year and. therefore, the loss could not be allowed.

Held that—In similar circumstances, Hon’ble Supreme Court in the matter of Chennai Properties & Investments Ltd. [2015] [SUPREME COURT] decided matter in favor of the assessee holding that income from renting a property of Mall to be treated as business income and in those circumstances, appellant case is fully covered by the aforesaid judgment.

ITAT Bench of Mumbai in the matter of Hagwood Commercial Developers Pvt. Ltd.[2017 (2) TMI 626 - ITAT MUMBAI] has also given finding in favor of assessee. To the effect that even if Mall had not commenced business till end of relevant year, assessee had rightly debited general overhead expenses being indirect expenses incurred, in profit and loss account. Thus, we are considered opinion, that in assessee’s case, the income from renting a properties in Mall to be taxed as business income and not income from house property as well as business loss also to be allowed. - Decided in favor of assessee. [M/S. OCEANIC BUILDCON PVT. LTD. VERSUS THE ASST. COMMISSIONER OF INCOME TAX, CIRCLE-4, BARODA] [137[[AHMEDABAD][2018] [ITCD Online]