Inseparable composite letting of lodging house and furnishings taxed as income from other sources, not house property income.

Lease rent from a lodging house let together with its furniture, fittings and related amenities was treated as a composite, inseparable letting. The agreements and partnership deed were read together, and the premises were found to have been constructed and used as a lodging house with restaurant and allied facilities. On that basis, the letting fell within the residuary principle for inseparable lettings, so the rent could not be split between the building and the furnishings. The fact that the property may not have been a business asset did not justify taxation under the head income from house property, and the receipt was assessable as income from other sources.

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Issues: Whether the lease rent received from letting out the lodging house together with its furnishings and fittings was assessable as income from house property or as income from other sources.

Analysis: The building was found to be constructed and used as a lodging house with restaurant and allied facilities, and the agreements and partnership deed were read together to show that the premises and fittings were let as a composite arrangement. The letting of the building was inseparable from the letting of the furniture, fittings and related amenities, and the arrangement fell within the principle recognised by the statutory residuary provision dealing with inseparable lettings. The fact that the property might not amount to a business asset did not justify splitting the composite rent and taxing any part under the head of house property.

Conclusion: The rent was not taxable under the head income from house property and was assessable under the head income from other sources.

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