House Property

[RAHUL MALHOTRA]

Hello

I stuck in a controversial issue related to house property income received by partner from partnership firm. Facts are very similar to case law CIT V. Rasiklal Balabhai [1979]= (1978 (10) TMI 22 - GUJARAT High Court). In previous year, partner got Rs. 2,25,000/- as a rent from partnership firm for renting premises by partner that was used by firm to carrying on business.. As per supra case law income earned by partner as a rent is exempt but in some other court cases decision aforesaid amt is being taxed. please guide what to do?? Thanks in advance.

Regards

Rahul

09810267888

[DR.MARIAPPAN GOVINDARAJAN]

Whether you have got clarified in the above said issue? If not please inform.

AI Summary

House property income: rent from partnership use may be treated as exempt or taxable depending on conflicting precedent.
Partner received rent from a partnership firm for premises owned by the partner and used by the firm for business; the central question is whether such rent constitutes exempt house property income under precedent that treated similar receipts as exempt, against other decisions treating the receipts as taxable, requiring comparison of facts to governing authority to determine applicable treatment.