| SooperKanoon Citation | sooperkanoon.com/728842 |
| Subject | Direct Taxation |
| Court | Kerala High Court |
| Decided On | Jun-24-2008 |
| Case Number | IT Reference No. 290 of 1999 |
| Judge | C.N. Ramachandran Nair and; V.K. Mohanan, JJ. |
| Reported in | [2009]177TAXMAN478(Ker) |
| Acts | Income Tax Act, 1961 |
| Appellant | K. Bhaskaran Nair |
| Respondent | Commissioner of Income-tax |
| Disposition | Reference answered in favour of revenue |
Excerpt:
- code of civil procedure, 1908.[c.a. no. 5/1908]. section 100-a [as substituted by c.p.c. amendment act, 2002]: [v.k. bali, cj, kurian joseph & k. balakrishnan nair, jj] applicability held, section is not retrospective. all appeals filed prior to 1.7.2002 are competent. but subsequent to 1.7.2002 intro court appeals against judgment of single judge is not maintainable. provisions of section 100-a, c.p.c., will prevail over the provisions contained in the kerala high court act, 1959. c.n. ramachandran nair, j.1. the question raised is whether the rental income received for the building is assessable under the head 'income from house property' or as 'income from other source'. petitioner let out lodging house charging separate rent for the building and the furniture. according to the petitioner, for several years the entire income was returned was income from other source and it was being accepted by the assessing officer. however, for the assessment year 1990-91, the assessing officer bifurcated the rent and assessed rental income from building under the head 'income from house property' and rental income from furniture under the head 'income from other source'. apart from the past assessments consistent with the assessee's claim, we do not think assessee has any case to ask for assessment of rental income from building under the head 'income from other source' because rental income from building squarely falls under the head 'income from house property'. if the petitioner's claim is accepted, then rental income received from any furnished accommodation will have to be assessed under the head 'income from other source'. since the income-tax act provides for assessment after classifying the income under the appropriate head, petitioner cannot ask for shifting of head of income to another merely because the agreement provides for collection of rent for the building along with furniture. we therefore uphold the order of the tribunal and answer the question referred in favour of the revenue and against the assessee.
Judgment:C.N. Ramachandran Nair, J.
1. The question raised is whether the rental income received for the building is assessable under the head 'Income from house property' or as 'Income from other source'. Petitioner let out lodging house charging separate rent for the building and the furniture. According to the petitioner, for several years the entire income was returned was income from other source and it was being accepted by the Assessing Officer. However, for the assessment year 1990-91, the Assessing Officer bifurcated the rent and assessed rental income from building under the head 'Income from house property' and rental income from furniture under the head 'Income from other source'. Apart from the past assessments consistent with the assessee's claim, we do not think assessee has any case to ask for assessment of rental income from building under the head 'Income from other source' because rental income from building squarely falls under the head 'Income from house property'. If the petitioner's claim is accepted, then rental income received from any furnished accommodation will have to be assessed under the head 'Income from other source'. Since the Income-tax Act provides for assessment after classifying the income under the appropriate head, petitioner cannot ask for shifting of head of income to another merely because the agreement provides for collection of rent for the building along with furniture. We therefore uphold the order of the Tribunal and answer the question referred in favour of the revenue and against the assessee.