Co-owners share rental income: Tribunal directs deduction under section 57 for fair treatment.

The Tribunal allowed the appeal, emphasizing that the rental income belonged to co-owners, not solely to the assessee. The decision was based on evidence of property ownership, distribution of income, and avoidance of double taxation. The Tribunal directed the Assessing Officer to allow the deduction u/s 57, ensuring fair treatment of rental income.

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Issues:
Appeal against order of CIT(A) regarding treatment of rental income as income from house property and addition of extra income under IT Act.

Analysis:
The appeal was initially dismissed for non-prosecution but later recalled for hearing on merits. The assessee claimed that rental income did not belong to him but to family members, hence deduction u/s 57 was claimed. The Assessing Officer treated the income as 'income from house property' and added extra income. The CIT(A) upheld the order. The assessee provided evidence of property ownership and distribution of income to family members. The D.R. argued that since tax was deducted on rental income, it belonged to the assessee. The Tribunal found that the rental income was jointly owned by the assessee and family members. Affidavits and tax returns of family members confirmed receipt of rental income. The Tribunal noted that the Assessing Officer wrongly rejected evidence of property ownership. The Tribunal allowed deduction u/s 57 to avoid double taxation, stating the income belonged to co-owners. The appeal was allowed, directing the Assessing Officer to grant the deduction u/s 57.

Conclusion:
The Tribunal allowed the appeal, emphasizing that the rental income belonged to co-owners, not solely to the assessee. The decision was based on evidence of property ownership, distribution of income, and avoidance of double taxation. The Tribunal directed the Assessing Officer to allow the deduction u/s 57, ensuring fair treatment of rental income.

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