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2016 (9) TMI 258 - ITAT MUMBAIAllowability of depreciation on ‘Furniture and Fixture’, forming part of the leased assets, income from which is assessable u/s. 22 of the Act as ‘Income from house property’ - Held that:- The letting of the furniture and fixture is incidental (to letting the building) (para 6(b) of SOF). Further, per para 6(c) thereof, as an alternative, a prayer is made for a proportionate allowance, i.e., qua building that is complete and not leased, while that leased or, as the case may be, under construction, being liable to be adjusted against the value of the leased stock and work-in-progress (WIP) respectively. The furniture and fixture in the present case is without doubt only an adjunct to the letting of the building, being in fact appropriated on an equal basis over the house properties under reference. We, therefore, have no hesitation in confirming the impugned disallowance; there being no scope for assessment of the proportionate rent, as contended, as income from other sources. Our decision rests, we may clarify, not on the inseparability of the two lettings, but on the finding of the furniture and fixture under reference forming an integral part of the building, so that it’s letting is, as admitted, incidental. That is, it is a case of a single letting and, therefore, the rent relatable to furniture and fixture is not ascertainable. Add to this, the fact that the property under reference is actually leased out, i.e., constitutes a source of income and, thus, a capital asset by definition, and the assessee’s case becomes untenable on facts – the leased house property constituting the assessee’s capital asset, yielding a regular source of income, and toward which the assessee has, in fact, expended no insubstantial sums. Juxtapose this with the settled position in law that the income assessable under a particular head of income is to be necessarily computed under that head only and in the manner provided under the relevant sections (Sultan Brothers (P.) Ltd. (1963 (12) TMI 4 - SUPREME Court); East India Housing & Land Development Trust Ltd. (2016 (3) TMI 1109 - ITAT RAJKOT)), and there can be no manner of any doubt that the assessee’s claim is not sustainable in law. Decided against the assessee.
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