Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2017 (7) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (7) TMI 618 - HC - Income TaxIncome received by the Assessee from letting of the premises - assessed as ‘income from other sources’ u/s 56 (2) (iii) OR ‘income from house property’ - Held that:- In the present case, as already discussed, it is plain that letting is not merely of the building but a composite letting of both, the building as well as the equipment, furniture etc. and thereby Section 56 (2) (iii) was attracted. Applying the test laid down in Sultan Bros. (1963 (12) TMI 4 - SUPREME Court) the income from the letting in the hands of the Assessee was "a new kind of income" which could be considered to be income from house property since the income not from the ownership of the building alone "but an income which though arising from a building would not have arisen if the plant, machinery and furniture had not also been let along with it. The Court is, therefore, not persuaded to take a view different from that by the ITAT in the present matter. Consequently, the question urged, viz., whether the ITAT erred in holding that the rental income should be treated as ‘income from other sources’, is answered in the negative i.e., in favour of the Revenue and against the Assessee. Assessee said that in the event the entire income from the letting is treated as ‘income from source sources’ it cannot be deprived of the corresponding deduction in terms of Section 57 (iii) of the Act. The Revenue too has not disputed the fact that the Assessee has not claimed depreciation. Accordingly, it is directed that while giving the appeal effect, the AO will grant the Assessee the benefit of Section 57 (iii) of the Act.
|