Receipts From Leasing Educational Infrastructure Taxable as Business Income | ITAT

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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

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied