Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (9) TMI 706 - AT - Income TaxIncome from the house property shown by the assessee on letting out the property on rent to her husband - whether is a colourable transaction and therefore, the same is assessable under the head, “income from other sources” - Held that:- The entire finding of the AO as well as Ld. CIT(A), that it is a colourable transaction is without any merits and examining the case of the husband. If at all the revenue had any doubt about such arrangement, then both the cases of husband and wife should have been examined. If the money received by the assessee has been shown by letting out of the property, then it has to be taxed ‘as income from house property’ unless some material is brought on record to controvert the transaction. Further as brought on record by the learned counsel, the department itself in the subsequent year has accepted the rent received from husband as chargeable to tax under the head income from house property. Thus, on the facts of the case, the assessee’s income from letting out the property is to be taxed under the head “income from house property” - Decided in favour of assessee. Disallowance made u/s 14A read with Rule 8D - Held that:- Assessee has shown income under the head salary, income from house property, capital gains and interest income, which is mainly from saving bank account and FDR. From the perusal of the P&L Account, it is seen that assessee has debited ₹ 1,52,835/- on share transaction charges and STT charges of ₹ 2,89,148/- which can be said to be relatable for purchase of shares. The AO without examining the nature of expenditure and assessee’s claim, has resorted to Rule 8D mechanically. This is not mandate of the law under section 14(2). On these facts and in the interest of justice, we restore this matter to the file of the AO to examine the nature of expenses claimed by the assessee and whether any expenditure can be held to be attributable for earning of the exempt income or not - Decided in favour of assessee for statistical purposes .
|