M/S Rayala Corp. Pvt Ltd vs Assistant Commissioner Of Income ...

The Supreme Court held that income derived from renting out properties by a company engaged in real estate should be classified as 'Business Income' rather than 'Income from House Property'. Citing the precedent set in Chennai Properties and Investments Ltd. v. Commissioner of Income Tax [2015] 373 ITR 673 (SC), the Court emphasized that if the primary business of the assessee is leasing properties, the rental income qualifies as business income. The Court overturned the High Court's decision that classified the income as 'Income from House Property', thereby favoring the appellant's position.