Madhya Pradesh High Court: mall rental income is business income where letting is the company's business

Is shopping-mall rent 'house property' income or business income?

Business income. Where the company's primary objects are building, running and letting malls, rental income from mall properties is business income.

Facts in brief

• The company's primary purpose involved constructing, owning, developing, managing, running, hiring, letting, selling or leasing a shopping mall, and it earned rental income from mall properties.

Issue before the bench

The head of income for rentals earned in the course of that business.

Held

Such income is to be categorised as business income rather than income from house property.

Practitioner takeaway