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TMI Blog2017 (3) TMI 139X X X X Extracts X X X X X X X X Extracts X X X X ..... ided against assessee - ITA no.6481/Mum./2013 - - - Dated:- 1-3-2017 - SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER AND SHRI RAVISH SOOD, JUDICIAL MEMBER For The Assessee : None For The Revenue : Shri. Rajesh Kumar Yadav ORDER PER: SHAMIM YAHYA This appeal by the assessee is directed against order of CIT-A dated 06.08.2013 and pertains to assessment year 2010-11. 2. The grounds of appeal read as under: 1. First Ground of Appeal relates to Treatment of the Income as from House Property a) On the facts and in the circumstances of the case and in law, the learned CIT (Appeals) -4 while passing the Appellate Order allowed the compensation received from tenanted premises to be treated as income from House property. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sub-let a portion thereof and claimed that income from such sub-letting was assessable as business income, the department was justified in assessing the said income under 'Income from house property; in view of the fact that the assessee was in full control in his capacity as a tenant, and had earned income by sub-letting of the property. In situations of this type, there is nothing to suggest that ownership of the premises is essential for levying tax under the head Income from house property - Smarts (P.) Ltd. v. CIT [2008] 166 Taxman53(Delhi). In view of forgoing paras and the introduction of section 27(iiib) of the Act by the Finance Act, 1987, by virtue of this provision in case of a lease for a term of not less than 12 year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , is neither trade nor business for the purpose of the Income Tax Act where income is derived from house property by the exercise of property rights, income falls under the head income from house property . It is the nature of operations and not capacity of the owner that must determine whether income is from property or therefrom, the true character of the income derived as income from property. The head of the income is only governed by the Sec.14 of the LT. Act and not by otherwise. In the above said reply the assessee has stated that it has modified the premises to run the business of providing office premises to various clients and is getting compensation for the services rendered. From the fact that the tenants are fixed for a n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 25 (SC)] has held that the liability u/s. 22 is on a person who receives or is entitled to receive the income from the property in his own right. The requirement of registration of the sale deed in the context of the u/s. 22 is not warranted. This view is strengthened/supported by a subsequent amendment to u/s. 27. The said amendment was introduced to u/s. 27 by the Finance Act, 1987 by substituting cls. (iii), (iiia) and (iiib) in the place of old cl. (iii) w.e.f. 1st April, 1988. From the circumstances narrated and from the memorandum explaining the Finance Bill, 1987, it is crystal clear that the amendment was intended to support an obvious omission or to clear up doubts as to the meaning of the word owner in u/s. 22. In the light of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) 222 ITR 574 (Cal) and CIT vs. Krishna Lal ,4Ajmani ((1996) 222 ITR 653 (Pat)]. iii) Following Hon'ble Supreme Court decision in the case of Podar Cement (P) I Ltd. (supra) it has been held by Hon'ble Delhi High Court in CIT vs. Diljinder Shivdayal Singh (2004) 186 CTR (Del) 387 that rental income from the house property was assessable in the hands of the assessee under the head 'income from house property' and not as 'income from other sources' once he had been put in possession of the property on payment of full consideration, though no registered document was executed. iv) Having regard to the facts and circumstances of the case and in the light of decisions of Hon ble Apex Court and Hon ble High Cour ..... X X X X Extracts X X X X X X X X Extracts X X X X
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