Neeraj Yadav Vs ITO (ITAT Delhi)
Rental Income Taxed in Wrong Hands: ITAT Delhi Deletes Addition Made in Individual’s Case
The Delhi ITAT (SMC), in Neeraj Yadav v. ITO (ITA No. 7826/Del/2025, AY 2020-21; order dated 24.12.2025), has allowed the Assessee’s appeal and deleted the addition of ₹11.60 lakh made on account of alleged undisclosed income from house property.
The reassessment was framed u/s 147 by treating rental income from land situated at “Mandi” Chakkarpur, Gurgaon, as taxable in the hands of the Assessee in his individual capacity. The addition was confirmed by the NFAC.
Before the Tribunal, the Assessee demonstrated that the very same rental income had already been offered to tax in the hands of his HUF, as evident from the HUF’s return of income and computation placed on record. The Tribunal noted that the rental income had been duly assessed u/s 23(1) in the hands of the HUF for the relevant assessment year.
In these circumstances, the ITAT held that the Revenue authorities had wrongly assessed the income in the hands of the individual instead of the HUF, resulting in an unsustainable double taxation. Accordingly, the addition made in the Assessee’s individual assessment was deleted in toto.
The appeal was thus allowed in full, granting complete relief to the Assessee
FULL TEXT OF THE ORDER OF ITAT DELHI
