2014 (10) TMI 549

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.... whether Income Tax Appellate Tribunal was in error in covering the income from house property named Kantilal House under Section 27(iiib) of the Income Tax Act, 1961 (For short, "Income Tax Act"). The High Court observed that tenants from month to month or which are for a period not exceeding one year are excluded from the definition. However, it held that the assessee was a tenant for a long period and let out the premises to Bank of Baroda and, therefore, the income therefrom would be covered by Section 27(iiib) and not the exclusion clause. Section 27(iiib) reads as under:- 27. "Owner of the house property", "annual charge", etc., defined.- For the purposes of sections 22 to 26- xxx xxx xxx (iiib) a person who....

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....ngement of whatever nature), not being a transaction by way of sale, exchange or lease of such land, building or part of a building ; (f) "transfer"- (i) in relation to any immovable property referred to in sub-clause(i) of clause (d), means transfer of such property by way of sale or exchange or lease for a term of not less than twelve years, and includes allowing the possession of such property to be taken or retained in part performance of a contract of the nature referred to in section 53A of the Transfer of Property Act, 1882 (4 of 1882). Explanation. - For the purposes of this sub-clause, a lease which provides for the extension of the term thereof by a further term or terms shall be deemed to be a lease for....

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....on of lease and such lease has been extended by a further term or terms and the aggregate of such term is not less than twelve years, it is deemed to be a transfer of immovable property and such transferee is deemed to be owner of such immovable property under Section 27(iiib) of the Income Tax Act. 4. Neither the order of the Income Tax Appellate Tribunal nor the order of the High Court indicate any consideration of the above aspects in respect of the house property named Kanti Lal House except observing that the assessee has been a tenant for a long period and that it had let out the premises. No definite finding of fact about the pre-requisites of Section 269UA(f)(i) read with explanation as noted above has been recorded either by the....