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TMI Blog2020 (3) TMI 684X X X X Extracts X X X X X X X X Extracts X X X X ..... r not so in the agreement/s, viz. kitchen, balcony, living area, bathrooms, etc. How has the rent been received, i.e., in cash or through bank and, further, been sourced, i.e., whether from the assessee (or any other family member), or from the capital/income of the tenants. Why, there was even no attempt to inquire if the arrangement was a subsisting/continuing one, or confined to a year or two, strongly suggestive of, in that case, a solely tax motivated exercise. We are conscious, well be that the assessee's major son and daughter are financially independent (or substantially so), with independent incomes, sharing the interest burden of their common residence with their father. And, as such, instead of transfer of funds to him per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reement, where so, in whole or in part, with the assessee's working, within a reasonable time. We decide accordingly. - Decided partly in favour of assessee. - IT Appeal No. 4058 (Mum.) Of 2013 - - - Dated:- 5-3-2020 - Sanjay Arora, Accountant Member And C.N. Prasad, Judicial Member Kirit Mehta, CA for the Appellant. Kavita P. Kaushik, DR for the Respondent. ORDER Sanjay Arora, 1. This is an Appeal by the Assessee directed against the Order by the Commissioner of Income-tax (Appeals)-29, Mumbai ('CIT(A)' for short) dated 13-12-2012, partly allowing the assessees' appeal contesting his assessment for Assessment Year (AY) 2009-10 vide order u/s. 143(3) of the Income-tax Act, 1961 ('the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was therefore regarded merely as a tax-reducing device adopted by the assessee, liable to be ignored. Treating the house property as a self-occupied property, the AO restricted the claim of interest u/s. 24(b) to ₹ 1,50,000, and which was confirmed by the ld. CIT(A) in appeal for the same reason/s. 4. Before us, the assessee's claim was that there is nothing to show that the arrangement, which is duly supported by written agreements, furnished in the assessment proceedings, is fake or a make-believe. Rental income cannot be overlooked or disregarded merely because it arises from close family members. Sh. Mehta was, however, not able to, on a query by the Bench, state the status, i.e., self-occupied or rented, of the said premis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o provided access to or user of the common area - specified or not so in the agreement/s, viz. kitchen, balcony, living area, bathrooms, etc. How has the rent been received, i.e., in cash or through bank and, further, been sourced, i.e., whether from the assessee (or any other family member), or from the capital/income of the tenants. Why, there was even no attempt to inquire if the arrangement was a subsisting/continuing one, or confined to a year or two, strongly suggestive of, in that case, a solely tax motivated exercise. 5.2 It could, however, we are conscious, well be that the assessee's major son and daughter are financially independent (or substantially so), with independent incomes, sharing the interest burden of their commo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... allowed, ₹ 1.50 lakhs. The assessee shall provide a reasonable basis for such allocation as well as the working of the area let. We say so as it may well, in view of the joint residence, be that no area (portion) is specified in the rent agreements. The number of family members living jointly; their living requirements - which may not be uniform; fair rental value of the property, etc., are some of the parameters which could be considered for the purpose. The AO shall adjudicate thereon per a speaking order, giving definite reasons for being in disagreement, where so, in whole or in part, with the assessee's working, within a reasonable time. We decide accordingly. 6. In the result, the assessee's appeal is partly allowed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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