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TMI Blog2025 (1) TMI 1056X X X X Extracts X X X X X X X X Extracts X X X X ..... rvice or any other amenities, therefore, the rent received was declared under the head income from house property and such income from house property has been shown in all the earlier years, and there was never any dispute by the department. It is well settled principle, in view of the judgment of Raj Dadarkar Associates [ 2017 (5) TMI 586 - SUPREME COURT] that rental income derived from leasing of the property is to be assessed under the head income from house property as not a business income . Thus, income was liable to be assessed under the head income from house property only and not as business income. Applicability of section 161 - It is now well settled that if income being taxed in individual hands of beneficiaries, the same cannot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) for the year 2018-19. 2. In various grounds of appeal, the assessee has challenged firstly, not granting of deduction u/s 24(a) to Rs. 1,97,80,200/- as claimed by the assessee by computing the income from house property and in the intimation u/s. 143(1)(a) the assessee's income was assessed at Rs. 6,69,38,890/- as against "Nil" income by treating the income from house property as business income; Secondly, non granting of credit for TDS deducted from house property. 3. The brief facts of the case are that the assessee is a private specified beneficiary trust registered on 25.11.1978 for the benefit of 5 beneficiaries each having 20% share of income. The income derived from the trust has been offered to tax by the beneficiaries in their ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the appeal. 6. On perusal of the facts and materials placed on record before the Ld. CIT(A), it is seen that assessee is a private specified trust which had a property and was let out without any other asset or rendering any kind of services to M/s Schlumberger Asia Ltd. in the year 2003. The property continued to be rented till date and during the year assessee trust received rent of Rs. 6,59,34,000/-. Since assessee being the owner of the property which was given on rent without any service or any other amenities, therefore, the rent received was declared under the head income from house property and such "income from house property" has been shown in all the earlier years, and there was never any dispute by the department. It is well ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is now well settled that if income being taxed in individual hands of beneficiaries, the same cannot be assessed u/s 166 as "Representative Assessee's in the hands of the trust. This view is squarely covered by the judgment of Hon'ble Calcutta High Court in the case of Alfred Herbert (I)(P) Ltd. 159 ITR 583 (Cal).and in the case of Smt. Ushaben Trust 190 ITR 485 (Bom). Accordingly, we hold that firstly, income from rental income received from letting out property is to be assessed under the head "income from house property"; and secondly, once, the beneficiaries have included the trust income in their individual return of income and paid the tax at higher rate of tax, the assessee trust cannot be assessed at rate of assessee u/s 166. Accord ..... X X X X Extracts X X X X X X X X Extracts X X X X
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