Anurag Konduru vs. DCIT, Circle-2(2)(1)

Parties Involved

Facts Summary

The assessee, Anurag Konduru, filed his return of income declaring a total income of Rs. 18,01,930. During the assessment proceedings, the Assessing Officer (AO) noticed that the assessee received Rs. 95,00,088 from Reliance Projects and Property Management Services Limited towards rent. The AO called upon the assessee to explain why the said receipts should not be assessed under the head 'Income from house property' instead of 'Profits and gains of business or profession'. The assessee submitted that he had entered into an agreement with the Chief Traffic Manager, Bangalore Metropolitan Transport Corporation (BMTC), for operating a commercial office space and had sub-let the premises to Reliance Projects and Property Management Services Limited. The assessee further submitted that he was providing maintenance, security, cleaning, and other services and had offered the income as business income under section 44AD of the Act. The AO did not accept the explanation and treated the receipts as rental income. The assessee filed an appeal before the Commissioner of Income Tax (Appeals) (CIT(A)), which was dismissed. The assessee then appealed to the Income Tax Appellate Tribunal (ITAT).…

Legal Issues

• 1. Whether the income earned by the assessee by taking commercial premises on lease and further sub-letting the same is assessable under the head 'Profits and gains of business or profession' or 'Income from house property'.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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