Rental income classification: building rent from a furnished lodging house falls under house property, while furniture rent is separately taxable.

Rental income from the building portion of a furnished lodging house is assessable under the head "Income from house property" because the statutory classification depends on the source of the income, not on the parties' method of charging rent. The fact that the lease also covers furniture and provides a separate furniture rent does not allow the building rent to be recharacterised as "Income from other sources". The building rent was therefore correctly assessed under "Income from house property", while the furniture rent could be assessed separately under "Income from other sources", with the reference answered in favour of the Revenue.

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Issues: Whether rental income from the building portion of a furnished lodging house is assessable under the head "Income from house property" or under the head "Income from other sources".

Analysis: Rental income derived from the building itself falls within the statutory head "Income from house property". The mere fact that the lease arrangement also covers furniture and stipulates separate rent for furniture does not permit the assessee to shift the building rent to the head "Income from other sources". Income-tax assessment must be made under the appropriate head contemplated by the Act, and the method of collection agreed between the parties cannot alter that classification.

Conclusion: The building rent was correctly assessed under "Income from house property", while the furniture rent could be assessed separately under "Income from other sources". The answer to the referred question was in favour of the Revenue and against the assessee.

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