2010 (12) TMI 1295 - AT - Income Tax

Summary

Issues involved: Determination of whether income received from ICICI bank should be assessed as 'income from house property' or as 'income from other sources'.

Issue 1: Classification of income from ICICI bank

The Revenue raised the dispute regarding the classification of income received from ICICI bank. The Tribunal referred to a previous case for A.Y 2005-06 where a similar issue was decided. It was noted that the assessee had been in possession of the premises for 40 years, with the tenancy right received after the dissolution of a partnership. The property owners allowed the creation of a sub-tenancy with ICICI Bank Ltd. for 15 years. The Tribunal found that the assessee became a deemed owner as per the provisions of section 27[iiib] r.w.s. 269UA(f)(i) of the Act. The agreement with ICICI Bank Ltd. for 15 years supported the assessee's claim as the deemed owner, entitling them to deduction u/s.24(a) of the Act. Citing precedents from Mumbai Tribunal and Calcutta Tribunal, the Tribunal held in favor of the assessee, confirming the order of the CIT(A) and dismissing the Revenue's appeal.

Decision:
The Tribunal decided the issue against the Revenue, confirming the classification of income received from ICICI bank as 'income from house property'. The Revenue's appeal was dismissed, and the order was pronounced on December 29, 2010.