2019 (6) TMI 283

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....Sublet the Building (Ware House) on Rent which he took on Rent with the very purpose of subletting it. 2. Because the learned CIT (Appeals) Bareilly erred in accepting the intention of assessee for taking the ware house on rent and to sublet it on a higher rent and earn some profit & showing the Rent received from subletting out the warehouse as Business Income & not as H.P Income which is highly unjustified. 3. Because the learned CIT (Appeals) Bareilly erred in passing the Order u/s 143(3) of the I.T Act 1961, without considering the fact that the basic two conditions of Section 22 are must for treating Rental Income as Income from House property which it do not satisfy, 1) That the assessee must be the Owner of the Prop....

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....t pressed. 3. As per the assessment order, a lease agreement has been made by two lessors, namely, Shri Sushil Tuli, the present assessee, and Shri N.P.S. Bhandari with the lessee, M/s Safexpress Private Limited. The A.O observed that as per clause 2 of the lease agreement dated 30.8.2008, the rent for the leased premises (situated at A-12, Phase-2, Noida) shall be paid by the 5th of each month in advance for the respective month, according to English calendar month, by cheque of Rs. 2,25,000/- each in favour of Mr. Sushil Tuli and Mr. N.P.S. Bhandari separately, after deduction of TDS as per income tax law. The assessee was required to furnish the details of income from other sources with details of investment. In this regard, the asses....

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....f having sub-let the property, rather than having let-out the same as owner thereof. The addition of Rs. 14,17,500/- was made in this regard, treating the amount as income from house property. 7. The ld. CIT(A) has confirmed the addition, holding as under: "The appellant is claiming that it is not owner of the properties and therefore the income should not be taxed under income from House Property. This claim of the appellant has no basis. The appellant has entered into a lease agreement with a third party. This agreement does not talk about any sub-letting. In this proceeding also the appellant could not produce any evidence to show that the property is not owned by it. Therefore the action of the A.O is correct on this account....

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....l 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"." 14. Thus, there are two pre-conditions for charging the income as income from house property under section 22 of the Act. Firstly, the assessee must be the owner of the property. Also, the property must not be occupied by the assessee for the purposes of his business or profession. In other words, the property should be a residential property. 15. In the present case, neith....

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....¤¾ के सम्बन्ध में । महोदय, आपके उपरोक्त विषयक पत्र दिनांक किया जाता है कि प्रश्नगत परिसम्पत्ति के विरूद्ध दिनांक सं० नौएडा / औद्योगिक लेखा / दि....