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2016 (2) TMI 165 - AT - Income TaxLease rentals - falling under the head ‘Income from other sources’ OR ‘Income from house property’ - Held that:- As, admittedly, the assessee earned rental income from letting out of building, furniture & fixtures and electrical installations in a composite manner which are inseparable from each other, such income specifically falls under the head ‘Income from other sources’ and is liable to be taxed accordingly. The Hon’ble Supreme Court in a celebrated decision in Sultan Brothers (P) Ltd. vs. CIT (1963 (12) TMI 4 - SUPREME Cour), has held that where the building and fixtures were intended to be used together, then, combined rental income from such inseparable letting out should be charged to tax under the head ‘Income from other sources.’ Thus it is clear that the ld. CIT(A) has rightly treated lease rentals as falling under the head ‘Income from other sources.’ As regards the contention of the ld. AR for following the rule of consistency inasmuch as in earlier years such income was assessed under the head ‘Income from house property’, we find no force in the same as admittedly there can be no estoppel against the statute. When section 56(2)(iii) specifically provides for treating such income as falling under the head ‘Income from other sources’, there is no rationale in treating it as `Income from house property’ simply on the ground that in the earlier years such income has been wrongly taxed under section 22 of the Act. There is no res judicata in so far as the taxation provisions are concerned, more specifically, when the earlier accepted position is contrary to the specific provisions of the Act. We, therefore, refuse to countenance this argument. - Decided against assessee
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