2022 (11) TMI 1240

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....nly ground taken by the assessee is reproduced below: "1. That the learned CIT(A), Bareilly erred on facts and in law in confirming the action of Assessing Officer treating the entire rental income of Rs.10,85,276/- of the appellant which is contrary to the facts and circumstances of the case and added Rs.7,54,418/- as extra income after allowing deduction u/s 24 of the I.T. Act, 1961." 3. Learned counsel for the assessee, at the outset, submitted that assessee is an individual and during assessment proceedings the Assessing Officer observed that assessee had claimed deduction u/s 57 of the Act in respect of income received as rental and which the assessee had declared under the head 'income from other sources'. The assessee was....

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....his respect our attention was invited to pages 14 to 32 of the paper book where a copy of sale deed of the property in favour of the mother and assessee and all other family members was placed. Learned counsel for the assessee submitted that since the assessee himself was carrying on his own business therefore, for his share of property, his share in the rent was nil. Learned counsel for the assessee submitted that this practice of sub letting has been followed by him in the succeeding years also and in this respect my attention was invited to paper book pages 96 to 102 where copies of computation of income of assessee for the assessment years 2014-15 and 2015-16 are placed. Learned counsel for the assessee also invited my attention to page....

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....e heard the rival parties and have gone through the material placed on record. I find that the assessee had received the rental income from the godown, jointly owned by him and other family members namely Shri Ashish Mehrotra, Smt. Asha Mehrotra and Shri Amit Mehrotra. The entire rent received by the assessee has been paid to these three persons and this practice has been followed in succeeding years where the assessee has again claimed the rent paid to family members as deduction u/s 57 of the Act. The assessee, before the Assessing Officer, had filed affidavits of Shri Ashish Mehrotra, Smt. Asha Mehrotra and Shri Amit Mehrotra where they have confirmed that they have received the respective amounts from Vineet Mehrotra as part of the rent....