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2012 (12) TMI 191 - DELHI HIGH COURTRent received - Income from other sources vs Income from house property - whether the letting is a composite or inseparable letting - Was the Tribunal correct in holding that the rent received by the appellant was assessable as ‘income from other sources’? - held that:- tribunal has found that these three cases are of composite leases in which a consolidated rent has been fixed. Contention of the assessee that the fittings and fixtures and other installations in the let out premises were installed only at the desire of the lessee and in such circumstances, the income should properly be assessed under the head “income from house property” as mandated by Section 22 of the Act was rejected by the ITAT. Applicability of Judgements - held that:- The provisions of Section 56(2)(iii) were not required to be considered. The controversy before us is different namely, whether the rental income is to be assessed as property income or “income from other sources”. Therefore, it cannot be said that the judgment of the Calcutta High Court in CIT Vs. Shambhu Investment PVT Ltd. [2001 (3) TMI 77 - CALCUTTA HIGH COURT] or the judgment of the Supreme Court [2003 (1) TMI 99 - SUPREME COURT] which confirmed the judgment of the Calcutta High Court are authorities for the proposition that is being canvassed before us on behalf of the assessee. Here, the question that arises for decision is whether the letting was inseparable and therefore Section 56(2)(iii) was rightly invoked by the assessing officer. That question did not fall for decision either before the Calcutta High Court or before the Supreme Court in the judgments cited above. Income to be taxed under the head Income from other sources - substantial question of law has to be answered in the affirmative and against the assessee.
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