Deemed ownership under the Income-tax Act supports house property taxation and deduction for sub-tenancy rental income.

Rental receipts from a sub-tenancy arrangement were assessable as income from house property because the assessee had already been treated as a deemed owner under section 27(iiib) read with section 269UA(f)(i) of the Income-tax Act, 1961. The Tribunal followed its own earlier decision in the assessee's case, found no new material or change in law, and held that the Revenue had not shown any distinguishing feature to depart from the coordinate bench precedent. The assessee was therefore entitled to deduction under section 24(a), and the Revenue's challenge failed.

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Issues: Whether the rental income received from ICICI Bank in respect of the premises let out under the sub-tenancy arrangement was assessable as income from house property and whether the assessee was to be treated as a deemed owner for the purpose of deduction under section 24(a).

Analysis: The Tribunal followed its earlier decision in the assessee's own case for a prior assessment year, where the same arrangement had been examined and the assessee had been held to be a deemed owner under section 27(iiib) read with section 269UA(f)(i) of the Income-tax Act, 1961. On the facts already considered in the earlier year, the sub-tenancy receipts were held to arise from a situation attracting house property treatment, and no new material or change in law was shown to justify a different view. The Revenue failed to controvert the binding coordinate bench precedent or show any distinguishing feature.

Conclusion: The rental income was held taxable under the head income from house property, and the assessee's claim was accepted; the Revenue's challenge failed.

Ratio Decidendi: Where an assessee is treated as a deemed owner under section 27(iiib) read with section 269UA(f)(i) on the basis of the existing sub-tenancy arrangement, the rent received from such occupation is assessable as income from house property and the corresponding deduction under section 24(a) is available.

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