9911796707
TMI Blog1990 (8) TMI 409X X X X Extracts X X X X X X X X Extracts X X X X ..... and fourth floors of the building did not have any characteristic of rent and in that view, in further holding that 1/10th of the said amount is not assessable in the hands of the assessee as rent ? 2. Shortly stated, the facts are that the assessee owns a house property at 30, Circus Avenue, Calcutta-17. She undertook the construction of a five-storeyed building in the said premises but could complete the construction up to the second floor. Roofs of the third and fourth floors were laid but the construction could not be completed owing to lack of funds. The assessee leased out the third and fourth floors to A.B. Chowdhury and S.A. Salim by means of two several lease deeds dated 1-12-1980 and 17-2-1981, respectively. The terms of the t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... O thus added ₹ 21,575 being 1/10th of the total investments made by the lessees in the construction of the two floors as rent in the total income of the assessee. 4. The assessee appealed to the AAC before whom it was contended on behalf of the assessee that since the lessees took lease of the third and fourth floors under valid lease agreements from the assessee and obtained advance of fund from their common tenant, the ITO was not justified in treating the expenses incurred by the lessees as advance of loan for ten years and treating 1/10th thereof as rental income of the assessee. It was further contended that the investments made by the lessees were capital in nature and the same would not be taxed even in the hands of the less ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee and the two lessees are identical. It is true that the lease was for only 10 years from the date of the execution of the respective lease agreements. By the said deeds of lease the respective lessees were granted the right to sub-let and demise the premises wholly or in part to different monthly tenants or to licensees with previous information to the lessor in writing, that is, the assessee. It was also provided that the lessees shall have to complete the construction of the third floor and fourth floor at their own costs and each of the lessees shall also be entitled to make any addition or alteration or change in the demised premises at his own cost as per sanctioned plan but all such constructions shall become the properties of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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