TMI Blog2019 (6) TMI 841X X X X Extracts X X X X X X X X Extracts X X X X ..... ental income of the assessee has been accepted as income from the house property. Following the decision rendered by the coordinate Bench of the Tribunal and also by following the rule of consistency laid down in the case of Radhasoami Satsang vs. CIT [ 1991 (11) TMI 2 - SUPREME COURT] and Raj Dadarkar Associates [ 2017 (5) TMI 586 - SUPREME COURT] , we are of the considered view that rental income earned by the assessee from leasing out the property owned by it is chargeable to Income-tax under the head income from house property under section 22 - Decided in favour of the assessee. - ITA No.7557/Del./2018 - - - Dated:- 28-5-2019 - Hon ble Vice President, Shri G.D. Agrawal And Shri Kuldip Singh, Judicial Member ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ITR 49(SC). 3. Sultan Brothers -51 ITR, 353(SC) 2 The Learned CIT(APPEALS) has erred both on facts and in law in upholding the action of the Learned Assessing Officer in disallowing interest paid u/s 201(1A) on late deposits of TDS amounting to ₹ 43179. 3. Briefly stated the facts necessary for adjudication of the controversy at hand are : Assessee has earned an income of ₹ 57,49,98,489/- as revenue from operations. Assessing Officer noticed that the aforesaid income has been earned by the assessee from leasing and offered income to tax as income under the head house property instead of income under the head business and profession . Declining the contentions raised by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee has been accepted as income from the house property. 8. In the backdrop of the aforesaid undisputed facts, the ld. AR for the assessee contended that when the assessee is admittedly owner of the property in question and leased out the same on the basis of rental agreement, rental income is to be as taxed under the head income from house property and further contended that in the preceding years since 2011-12 and in the succeeding years, the rental income from the property in question has been accepted as income from house property by framing assessment under section 143 (3) of the Act and relied upon the decision rendered by Hon ble Supreme Court in the case of Raj Dadarkar Associates (2017) 394 ITR 592 (SC) . ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... merely because there is an entry in the object clause of the business showing a particular object, would not be the determinative factor to arrive at the conclusion that the income is to be treated as income from business. So, the object class as contained in the partnership deed would not be conclusive factor. So, the Hon ble Apex Court held that wherever there is an income from leasing out of premises and collecting rent, normally such an income is to be treated as income from house property, if the provision of section 22 are satisfied and merely on the basis of entry in the object clause of the business showing a particular object would not be a determinative factor to arrive at a conclusion that income is to be tre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om business profession is not tenable in the face of the fact that computation of income, available at page 44 of the paper book, shows that the assessee has never claimed depreciation on the property leased out. Rather AO granted the depreciation after rejecting the claim of the assessee that rental income is to be assessed under the heads income from house property . 17. So AO, after assessing the income of the assessee under the head business profession , added depreciation on the property of assessee. So, we are of the considered view that entire rental income earned by the assessee during the year is chargeable to Income-tax under the head income from house property u/s 22 of the Act and the assessee shall not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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