2014 (8) TMI 940

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..... he Estamp Authority as “Smt. Neelam Kaur Chhabra and Other” shall not be a sufficient ground to draw an adverse inference with regard to the ownership of the property. The rent agreement also provided with regard to the rent to be paid to these co-owners. The whole rent was credited in the account of Smt. Neelam Kaur Chhabra and TDS was also deducted in her name. However, Shri P.S.Chhabra has declared the 50% rent income in his return of income and paid the taxes accordingly. In our considered view, the rental income accrued to Shri P.S. Chhabra from the property owned by him in 50% share, therefore, subsequent act of crediting the rent to his wife’s account will not make any difference with regard to the accrual of the income in the hands .....

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..... The husband of the assessee, Shri P.S. Chhabra did not claim credit for the TDS deducted on the rent. The Assessing Officer held that this whole rental income is to be taxed in the hands of assessee. The CIT (A) confirmed the action of the Assessing Officer. The grounds of appeal taken by the assessee read as under :- 1. The appellant denies the addition of ₹ 3,56,422 as confirmed by the Hon'ble Commissioner of Income Tax (Appeals) - XXI, New Delhi. 2. The addition of ₹ 3,56,422 consists of one half income from house property received during the year from Dr. Shikhas Nutri-Health Systems Pvt. Ltd., which belongs to the husband Mr. P.S.Chhabra. 3. The Hon'ble Commissioner of Income Tax (Appeals) has accepted in .....

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..... 50% owner. At the most the credit for TDS corresponding to the second half of rental income may not be allowed to the assessee. 3. We have heard both the sides on the issue. It is an undisputed fact that this property was registered in the name of assessee, Smt. Neelam Kaur Chhabra and her husband, Shri P.S. Chhabra. The Assessing Officer draw an adverse view with regard to the mentioning by Estamp Authority on the sale deed wherein the second party was shown Smt. Neelam Kaur Chhabra and other. In our considered view, when there is a clear mention of both the purchasers in the sale deed then only on the basis of simply mentioning by the Estamp Authority as Smt. Neelam Kaur Chhabra and Other shall not be a sufficient ground to draw an .....

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