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2016 (9) TMI 803 - ITAT BANGALORE

2016 (9) TMI 803 - ITAT BANGALORE - TMI - Status of AOP - property purchased by the husband and wife in the joint names - Held that:- There is no dispute that the property in question was purchased by the husband and wife in the joint names and no specific share of the husband and wife 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 accoun .....

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rchase consideration. Since the assesses have filed additional evidence in 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 .....

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. 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 wife are directed against the composite order dt.28.5.2014 of Commissioner of Income Tax (Appeals) for the Assessment Year 2008-09. Common grounds are raised in these appeals which are as under : 1. That the orders of the A.O./CIT (Appeals) in so far as .....

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he rental income of ₹ 8,53,632 letting out building as income from other sources. 6. Without prejudice to the above, the A.O./CIT (Appeals) erred in not allowing depreciation as per law. 7. The ld. A.O./CIT (Appeals) erred in not giving credit to the taxes paid. 8. The appellant denies liabilities for interest under Section 234B. Without prejudice to the appellant s right of seeking waiver before appropriate authority, the appellant begs for consequential relief in the levy of interest und .....

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g rent and service charges received from the property which was purchased and held in joint names was assessed as income from other sources . Aggrieved by the action of the Assessing Officer the assesses filed appeals before the CIT (Appeals). The CIT (Appeals) has confirmed the action of the Assessing Officer so far as the assessment were made as AOP in respect of individual assesses as well as treatment of rental income and service charges as income from other sources . However the CIT (Appeal .....

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n 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 servi .....

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ion in purchase of the property. The learned Authorised Representative has referred to the agreement and pleaded that the assesses have the joint account in USA as well as in India and both husband and wife are working having their independent source of income. He has further contended that the assesses have filed the relevant documents to show their separate source of income and joint account in USA as well as in India from where the purchase consideration was paid. Thus the learned Authorised .....

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ng Officer assessed the entire income in the hand of the AOP instead of individual status. The status of individual was not accepted by the Assessing Officer as the sale date under which the property was purchased has not expressly mentioned specific share of the husband and wife. Thus the learned Authorised Representative has submitted that in view of the Section 45 of the Transfer of Property Act as well as the additional evidence filed by the assessee, the share of the husband and wife in the .....

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records have been considered. There is no dispute that the property in question was purchased by the husband and wife in the joint names and no specific share of the husband and wife 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 ha .....

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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 property in proportion to the shares of the consideration which they respectively advanced. In the absence of evidence as to t .....

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rce 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. 5. Ground No.5 is regarding taxing the rental income as income from other sources. 5.1 The learned Authorised Representative of the assessee has submitted that the property in que .....

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m other sources is not justified as this is the only property of the assessee which has been let out with obvious reason that the assesses are staying in USA for their job purpose and therefore rental income offered by the assessee as income from house property ought to have been accepted. He has further contended that service agreement is nothing but regarding the air-condition, lift and other common amenities of maintenance of generator etc. which are part and parcel of the building and theref .....

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val 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 can .....

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