SC : Resolves business income vs house property controversy on lease-rentals in assessee’s favour

SC reverses Madras HC judgement, rules in favour of assessee-company; Holds rental income arising to assessee from leasing property taxable as ‘business income’ and not ‘house property’ income, notes that assessee has only one business of leasing its property; SC rules that “The business of the company is to lease its property and to earn rent and therefore, the income so earned should be treated as its business income”; SC accepts assessee’s reliance on ruling in Chennai Properties & Investments Ltd wherein the Apex Court had held that rental income received by assessee having a business of renting the property, shall be taxed as business income; SC observes “…we are of the view that the law laid down by this Court in the case of Chennai Properties (supra) shows the correct position of law and looking at the facts of the case in question, the case on hand is squarely covered by the said judgment”; SC rejects Revenue’s reliance on Apex Court ruling in G. Mercantile Corpn. (P) Ltd:SC