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2014 (8) TMI 940 - AT - Income TaxDisallowance of rental income - Property in the name of both husband and wife - In the return of income, assessee and her husband declared 50% rental income from this property and paid tax accordingly - Held that:- Property was registered in the name of assessee, Smt. Neelam Kaur Chhabra and her husband, Shri P.S. Chhabra. The Assessing Officer draw an adverse view with regard to the mentioning by Estamp Authority on the sale deed wherein the second party was shown Smt. Neelam Kaur Chhabra and other. In our considered view, when there is a clear mention of both the purchasers in the sale deed then only on the basis of simply mentioning by the Estamp Authority as “Smt. Neelam Kaur Chhabra and Other” shall not be a sufficient ground to draw an adverse inference with regard to the ownership of the property. The rent agreement also provided with regard to the rent to be paid to these co-owners. The whole rent was credited in the account of Smt. Neelam Kaur Chhabra and TDS was also deducted in her name. However, Shri P.S.Chhabra has declared the 50% rent income in his return of income and paid the taxes accordingly. In our considered view, the rental income accrued to Shri P.S. Chhabra from the property owned by him in 50% share, therefore, subsequent act of crediting the rent to his wife’s account will not make any difference with regard to the accrual of the income in the hands of Shri P.S. Chhabra. Therefore, we hold that this property was co-owned by two persons in equal ratio, viz., the assessee and her husband. The rental income has been accrued in the same ratio to them. Subsequent act of crediting the rent in assessee’s name shall not make her liable to be assessed for the rental accrued on the half share of the property belonging to her husband, Shri P.S. Chhabra. Shri P.S. Chhabra had already declared the income in his return. Considering all these aspects, we set aside the orders of the authorities below - Decided in favour of assessee.
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