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2017 (3) TMI 660 - AT - Income TaxRental income from the property - “income from other sources” OR “income from house property” - CIT(Appeals) has accepted the fact that property must have been constructed in the year 2007-08, thus, in a way, he confirmed that the property consisting of building came into existence and the assessee fulfill both the conditions for assessing the rental income from the property under the head “income from house property” - Held that:- The reasoning for assessing the income under the head “income from other sources” given by the learned Commissioner of Income Tax (Appeals) is not justified because if the cost of construction is not shown in books of account, the Assessing Officer is free to take necessary action for evasion of tax, if any, in that regard. However, construction expenses not recorded in books of account, cannot be a ground for assessing the rental income under the head “income from other sources” when the conditions of Section 22 of the Act for assessing the annual value of the property have been fulfilled by the assessee. By not recording construction expenses in books of account, the rights of ownership of the assessee over the property cannot be taken away and it remains the owner of the property. In view of the above discussion, we, therefore, direct the Assessing Officer to assess the rental income from the property under the head “income from house property” - Decided in favour of assessee
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