9911796707
TMI Blog2016 (8) TMI 367X X X X Extracts X X X X X X X X Extracts X X X X ..... come from House Property' earned in respect of three different properties as 'Income from Other Sources' on the ground that the assessee is not the owner of the said properties but the tenant of the said property and the income has derived from sub-letting the same to different parties. (b) Your appellants respectfully submits that the assessee being deemed owner of the said properties in terms of s.27(iiib) r.w.s269UA(f) as the said properties were taken on lease for more than 12 years and as such, the rental income from the said properties should be taxed as 'Income from House Property'. (c) Your appellants pray that the income from the said properties of Rs. 5,04,000/- be charged under the head Income From House Property and 30% deduction u/s.24(a) be granted. 2. DISALLOWANCE OF EXPNESES OF Rs. 10,088/- AGAINST THE INTEREST INCOME OF Rs. 94,233/-. (a) The CIT(A) erred in law and on facts in confirming the treatment of the learned AO of disallowing business expenses of Rs. 10,088/- by holding that the appellant is not engaged in the money lending business as no additional loans were advanced during the year but she continued to earn interest income on money advanced in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Act was issued and served upon the assessee. The assessee was an individual and showed his income under the head house property, business and income from other sources. Business income has been claimed in the nature of money lending and financing business. Assessee has also earned interest on capital with partnership firm, M/s. Sona Textiles to the tune of Rs. 4,029/-. During the year under consideration, assessee has shown income from house property to the tune of Rs. 5,04,000/- from the three different properties. It was found that the assessee was the tenant of the said premises which has been let out to different parties. Since the assessee was not owner in view of the section 22 of the Act, therefore the income was not counted as income from house property and was taxed income from other sources and no deduction u/s.24(a) of the Act was allowed. The assessee had also received the interest to the tune of Rs. 94,233 on account of money lending activities but the Assessing Officer was of the view that the assessee did not advance money but has earned interest income on money advanced in earlier years, therefore, the same was treated from money lending business and was treated a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase, the appellant has entered into lease agreements in respect of the concerned properties for a period of not less than 12 years. The appellant has furnished copies of lease agreements and rent receipts in support of its claim. On perusal of the documents placed on record, I observed that the assessee though not an owner of the property but is a deemed owner of the property in view of the provisions of section 27(iiib) r.w.s269UA(f) of the I.T.Act, 1961 as the assessee is holding the aforesaid properties on lease for a period of more than 12 years. 8.3 I also find that the judgment given by Mumbai ITAT in the case of DCIT Vs. D.B.S. Financial Services Limited strongly supports the contention of the appellant. In this case hon'ble ITAT has held that "under s.27(iib), for the purposes of ss.22 to 26 "owner of house property" is defined. The aforesaid provision stipulates that a person who acquires any rights by virtue of any transaction referred to in cl.(f) of s.269UA, shall be deemed to be the owner and accordingly the relevant income has to be taxed as income from house property. Irrespective of whether the rights have been acquired under a lease or a sub-lease, s.27(iiib) shal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e is not the owner of the said properties but the tenant of the said property and the income has derived from sub-letting the same to different parties and consequently erred in confirming the denial of standard deduction u/s.24(a) of Rs. 1,21,800/- being 30% of corresponding aggregate annual value of the said properties. (b) Your appellants respectfully submits that the assessee being deemed owner of the said properties in terms of s.27(iiib) r.w.s269UA(f) as the said properties were taken on lease for more than 12 years and as such, the rental income from the said properties should be taxed as 'Income from House Property'. (c) Without prejudice to the above, your appellant submits that the property at Koyaji Chawl, Bhoiwada is fully owned by her whose proofs have been submitted and hence net rent thereof of Rs. 44,000 should be assessed as 'Income from House Property' and standard deduction u/s.24(a) be allowed. (d) Your appellants pray that the income from the said properties of Rs. 4,06,000/- be charged under the head Income From House Property and 30% deduction u/s.24(a) be granted. 2. SERIOUS VIOLATION OF NATURAL JUSTICE (a) The CIT(A) erred in law and on facts in c ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
