Rental income taxed once under house property cannot be reassessed as business income when already disclosed in return.

Rental receipts disclosed in the return under the head income from house property, with deduction claimed under section 24(a), could not be assessed again as business income when the same income had already been offered to tax and there was no substantive dispute on disclosure. On those facts, the addition sustained by the first appellate authority was not supportable, and the receipt could not be taxed twice under a different head. The assessee succeeded and the addition was directed to be deleted.

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Issues: Whether rental income already disclosed under the head income from house property could again be assessed as business income and the corresponding addition sustained.

Analysis: The return, computation of income, and audit records showed disclosure of rental receipts under the head income from house property with deduction claimed under section 24(a). The same income had been offered in the tax return and there was no substantive dispute on its disclosure. In these circumstances, the same receipt could not be brought to tax again under another head. The addition sustained by the first appellate authority was therefore not supportable on the facts on record.

Conclusion: The issue is decided in favour of the assessee and the addition was directed to be deleted.

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