TMI Blog2016 (9) TMI 803X X X X Extracts X X X X X X X X Extracts X X X X ..... support of the independent source of income and contribution in the purchase consideration which is required to be examined and verified. Accordingly in the facts and circumstances of the case this issue is set aside to the record of the Assessing Officer to examine and verify the additional evidence filed by the assessee and then decide the issue. Taxing the rental income as ‘income from other sources ’ - Held that:- The predominant purpose was letting out the commercial building/property in question and not the lift or air-conditioners fixed in the building. Therefore the charges for common lift and air condition would partake the character of the main purpose of letting out which is the building and accordingly the rental income will be assessed as ‘income from house property’. Hence the orders of the authorities below for this issue was set aside and the claim of the assessee is allowed. - I.T. (I.T) A. No.65/Bang/2015, I.T. (I.T) A. No.66/Bang/2015 - - - Dated:- 29-7-2016 - SHRI VIJAY PAL RAO, JUDICIAL MEMBER For The Appellant : Shri K.Y. Ningoji Rao, C.A. For The Respondent : Smt. Renuka Devi,JCIT (D.R) ORDER These two appeals by the husband and wif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sions of section 57(ii) of the Act. 3. Ground Nos.1 2 are general in nature and does not require any specific adjudication. 4. Ground No.3 4 are regarding the status of AOP. 4.1 The learned Authorised Representative of the assessee has submitted that the assesses are husband and wife and Non-Resident Indians (NRIs). The assesses are working in USA and having their joint account in USA as well as in India. The property in question is a commercial property and was purchased by the assesses in their joint names by contributing the purchase consideration from the joint account. Therefore the assesses are having equal share in the property and accordingly rental income of the property as well as service charges of the property are equally shared by the assesses and offered to tax as income from house property . The learned Authorised Representative has referred to the rent agreement and service agreement and submitting that the separate agreements were entered into by the assessee. When the assesses are not in the business of hiring or leasing out of the property, the assessments made by the Assessing Officer by treating the same as AOP in respect of individual is not just ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ife is mentioned in the purchase document. However, the assessee has filed the additional evidence showing the independent source of the husband and wife for purchase of the property which was pooled into joint account in USA and transferred to India from where the payment was made in the property. Thus the assesses have claimed that when the husband and wife both have contributed their share of purchase consideration then the share in the property is in the ratio of contribution in the purchase consideration. Reference has been made to Section 45 of the Transfer of Property Act as under : 45. Joint transfer for consideration -- Where immovable property is transferred for consideration to two or more persons and such consideration is paid out of a fund belonging to them in common, they are, in the absence of a contract to the contrary, respectively entitled to interests in such property identical, as nearly as may be, with the interests to which they were respectively entitled in the fund; and, where such consideration is paid out of separate funds belonging to them respectively, they are, in the absence of a contract to the contrary, respectively entitled to interest in such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as given a finding that the let out of the building is inseparable from letting of plant and machinery, furniture and therefore entire income is to be assessed as income from other sources as per section 56(2)(iii) of the Act. 5.3 Having considered the rival submissions and relevant material on record it is noted that this is an isolated case of purchase of property in the joint name by the husband and wife and letting out the same to the tenant. Therefore it is not the case of a regular and organized activity of the assesses to lease out the properties. When it is only an isolated case of owning a single property in the joint name then the rental income from letting out of the property will be in the nature of income from house property and cannot be treated as income from other sources . As regards the service charges under the separate service agreement, it is clear that this is only with respect to the power back up, air condition and other lighting fixtures and service lifts as well as car parking spaces. Therefore no specific machinery or furniture was made available by the assessee to the tenant against the service charges but only the necessary amenities and power b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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