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TMI Blog2014 (1) TMI 752X X X X Extracts X X X X X X X X Extracts X X X X ..... and rental income from commercial building - Rental income from residential and/or commercial building has to be assessed under section 22 of the Act under the head "Income from House Property" subject to certain exceptions. Section 22 shows that the term used in section is 'building', it is not qualified by the word 'residential' – Relying upon Shambhu Investment P. Ltd. Vs. CIT [2003 (1) TMI 99 - SUPREME Court] - the property situated at Raahat Plaza, Arcot Road, Chennai is a commercial property - the deduction claimed by the assessee under section 54F of the Act on account of investment in new residential house at Kodaikanal is allowed – Decided in favour of Assessee. - ITA No.232/Mds/2013 - - - Dated:- 11-6-2013 - Dr. O. K. Naraya ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... than the new asset. The Assessing Officer was of the view that the term 'residential property' and 'commercial property' have not been defined under the provisions of the Income-tax Act. The residential property can be converted into commercial property and commercial property can be converted into residential property by virtue of its use. The Assessing Officer rejected the claim of the assessee, as the assessee failed to satisfy the condition in the proviso (a)(i) to section 54F(1). Aggrieved against the assessment order, the assessee preferred an appeal before the Commissioner of Income Tax (Appeals). The Commissioner of Income Tax (Appeals) upheld the findings of the Assessing Officer and dismissed the appeal of the assessee. Now, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erty is a commercial property and is not being used for residential purposes. 4. On the other hand, Shri S. Jayaraman, appearing on behalf of the Revenue, vehemently opposing the submissions made by the counsel for the assessee relied on the order of the Commissioner of Income Tax (Appeals). 5. We have heard the submissions made by the representatives of both the sides. We have also perused the orders of the authorities below as well as rent agreements placed on record by the learned counsel for the assessee. A perusal of the impugned order shows that the authorities below have erred in coming to the conclusion that the assessee owns two residential properties as the income received from the commercial property is assessed under the hea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irmed by the Hon'ble Supreme Court of India in the case of Shambhu Investment P. Ltd. Vs. CIT reported as 263 ITR 143(SC). The Hon'ble Karnataka High Court in the case of CIT Vs. Bhoopalam Commercial Complex Industries (P) Ltd. reported as 262 ITR 517 (Kar), in the facts and circumstances of the case held that rental income from commercial complex is liable to be assessed under the head "income from house property". Thus, in the instant case the Commissioner of Income Tax (Appeals) has erred in holding that since the income from commercial property is assessed under the head "income from house property" the property is residential. 8. The learned counsel for the assessee has placed before us copies of rent agreements between the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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