Case : Can an assessee engaged in letting out of  rooms in a lodging house also treat the income from renting a building to a bank on long term lease as business income?

Ruling : While lodging constitutes the core business activity of the assessee, however, letting out building to a bank on long term lease could not be treated as business of the assessee.The lodge itself constitutes assets held to be used in furtherance of business activities.However, the leased out building will be considered as ‘house property’ and lease rent so derived from it will be taxable under the head ‘house property’

[Joseph George & Co. vs ITO]

Year of Pronouncement : 2010