Development of infrastructure for shooting locations, such rental income being capital in nature could not be held income

IT : Where lease rentals were earned from land which were developed for creating film shooting facilities/locations and it was directly, connected with main activity of assessee, i.e., development of infrastructure for shooting locations, such rental income being capital in nature could not be held income
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[2014] 48 taxmann.com 364 (Andhra Pradesh)
HIGH COURT OF ANDHRA PRADESH
Commissioner of Income-tax, Hyderabad -I
v.
Usha Kiran Movies Ltd.*
KALYAN JYOTI SENGUPTA, CJ.
AND SANJAY KUMAR, J.
I.T.T.A. NOS. 31 OF 2007 & 60 OF 2010
FEBRUARY  6, 2014
Section 4, read with section 263 of the Income-tax Act, 1961 - Income - Chargeable as (Rent) - Assessment year 1995-96 - Assessee-company, engaged in development of infrastructure for shooting location, filed nil return for relevant year and same was accepted by Assessing Officer - Commissioner in exercise of jurisdiction under section 263 reversed assessment order and directed that rental income received by assessee would not be capitalised and same should be brought to tax - Whether since lease rentals were earned from land which were developed for creating film shooting facilities/locations and it was directly, connected with main activity of assessee, i.e., development of infrastructure for shooting locations, such rental income being capital in nature could not be held income - Held, yes [Para 6] [In favour of assessee]
J.V. Prasad for the Appellant. Ms. Mamata Chowdary and B. Nalin Kumar for the Respondent.