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TMI Blog1982 (9) TMI 149X X X X Extracts X X X X X X X X Extracts X X X X ..... se appeals is on the question as to whether the income derived by the assessee by way of lease rent in respect of the lodging house is assessable under the head 'income from property' in accordance with the provisions of s. 22 to 27 or it is assessable as income under head 'income from other sources', while the departmental authorities have held that a portion of the rent derived as referable to the letting out of the property' and the other portion of the rent said to be referable to amenities provided in the lodge is chargeable as 'income from other sources'. 3. The contention of the assessee before us is that the departmental authorities are not justified in splitting the income derived by way of lease rent from the lodging house at No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le because it would be seen from the agreement relating to the fittings that it covers not only items like cots, chairs, table, dunlop mattress, pillow etc., but also motors and pump sets and fittings which are inseparable from the buildings like pipes sanitary fittings, etc. Our attention is further drawn to the copy of the partnership deed of the firm Sri Lakshmi Lodge, where in cl. 9 the stipulation is that the firm shall pay a rent of Rs. 10,000 per month to the assessee and other co-owners proportionately according to the respective share for use of the business premises along with the fittings. A copy of the eviction order in the petition filed by the assessee and other co-owners in HRC No. 526 of 1975 has also been filed in support o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... consideration of the relevant facts in this case and the contentions of the parties we are find considerable force in the connection of the assessee. It appears from the materials adduced by the assessee that the building concerned is one intended purely for commercial exploitation as a lodging house in its construction, structure and other respects. Evidently it has a restaurant and a number of rooms let out for lodging purposes it is also seen that the premises has a restaurant and a number of parking stalls. The sanitary and other fittings like pipes have necessarily to be such as to cater to the needs of the lodgers and would form part and parcel of the buildings itself. It would further appear that even if the three co-owners cannot b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 12 of the Indian IT Act, 1922 corresponding to s. 56 of the IT Act, 1961 as income under the head income from other sources. As a matter of fact this decision though relied on by the ld. departmental representative as supporting his case, according to us really supports the assessee stand. It appears to us that the ratio of the decision has been statutorily recognised in s. 56 of the IT Act, where under sub-s. (2) cl. (iii) it is stated that 'where an assessee lets on hire machinery plant on furniture belonging to him and also buildings and the lettings of the buildings in inseparable from the letting of the said machinery plant or furniture the income from such letting if it is not chargeable to income tax under the head 'profits and gain ..... X X X X Extracts X X X X X X X X Extracts X X X X
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