Vinay Vohra & Co.

Receipts From Leasing Educational Infrastructure Taxable as Business Income | ITAT

Best Taxation Service

We are a thriving firm of Chartered Accountants with the goal of providing a one-stop shop for all financial services.

Business Strategy & Growth

We believe integrity is the quintessential value that is the engine behind getting things done in the organization.

Highly Dedicated Worker

You can put your trust in the economic realm and expect the best outcome. With a strong team that possesses the necessary skill set .

Business income vs income from house property

Case Details: Deputy Commissioner of Income-tax vs. Nord Anglia Education Infrastructure (P.) Ltd. [2025] 181 taxmann.com 240 (Visakhapatnam - Trib.)

Judiciary and Counsel Details

  • Ravish Sood, Judicial Member
  • Balakrishnan S., Accountant Member
  • Karnjot Singh Khurana, Snehal Rajan Shukla & Avar Lamba, Advs. for the Appellant.
  • Badicala Yadagiri, CIT-DR for the Respondent.

Facts of the Case

The assessee-company was engaged in the business of providing land, buildings, and other infrastructure to educational institutions. For relevant assessment years, it filed its returns disclosing receipts from leasing its buildings to associate educational societies, offering receipts as business income.
However, the Assessing Officer assessed receipts under the head ‘Income from house property’. CIT(A) held in favour of the assessee. The matter reached before the Tribunal.

ITAT Held

The Tribunal ruled that the assessee constructed a custom-built educational infrastructure with a built-up area as required by the lessee-educational society and entered into lease agreements for land and buildings along with multiple service agreements such as housekeeping, security, transport management, playground and sports-facility maintenance, and CCTV monitoring.
Since assessee was engaged in complex commercial exploitation of large-scale educational infrastructure along with multi-facet associated services, and was not a passive landlord, subject receipts from its said multi-facet activities clearly fell within the meaning of “business receipts” and could not be assessed as its income under the head “Income from house property”.

List of Cases Reviewed I

List of Cases Reviewed II

List of Cases Referred to

The post Receipts From Leasing Educational Infrastructure Taxable as Business Income | ITAT appeared first on Taxmann Blog.

source

1

Auditing - Assurance

2

Goods & Services Tax

3

Investment in India by Foreign Nationals & NRI's

4

Accounting & Bookkeeping

5

International Taxation

6

Startup Services

7

Mergers & Acquisition Advisory

8

Income Tax

9

Corporate Financial Services

10

Indian Business Advisory Service
Have Any Question?

Always willing to lend a hand and answer any questions you may have. It would be great if you could contact us.

Newsletter

Signup our newsletter to get update information, insight or news