2014 (1) TMI 752

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....e was selected for scrutiny and notice under section 143(2) was issued to the assessee on 23.08.2010. In the return of income, the assessee had claimed deduction under section 54F of the Act. During the course of assessment, the assessee disclosed that apart from property purchased at Kodaikanal for Rs. 1,14,88,000/- , the assessee owns residential house at Sidharth Heights and commercial property at Raahat Plaza, Chennai. The assessee had purchased property at Kodaikanal from the sale proceeds received from sale of land measuring 16.96 cents at Kazura Garden, 1st Main Road, Nilankarai. The Assessing Officer rejected the claim of the assessee under section 54F, on the ground that the assessee is owner of two properties one residential house....

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....t of commercial property is assessed under the head "Income from House Property". The Income Tax Act does not provide any other head for assessing rental income received from letting out of commercial property. The view of the authorities below that rental income from letting out of commercial property assessed under the head "Income from House Property" leads to the conclusion that the assessee is owning another residential property is misconceived. The learned counsel for the assessee submitted that the assessee had placed various documents viz. water supply bills, planning permit issued by Madras Metropolitan Development Authority etc. to show that the building where the assessee is owning the property is a commercial building were not t....

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....uilding has to be assessed under section 22 of the Act under the head "Income from House Property" subject to certain exceptions. 6. The provisions of section 22 relating to charging of income under the head "income from house property" are reproduced herein below:- "22. The annual value of property consisting of any buildings or lands appurtenant thereto of which the assessee is the owner other than such portions of such property as he may occupy for the purposes of any business or profession carried on by him the profits of which are chargeable to income-tax, shall be chargeable to income-tax under the head "Income from house property". 7. A perusal of section 22 shows that the term used in section is 'building', it is not qualified by....