Case Law Details
Sushil Tuli Vs ITO (ITAT Lucknow)
Section 22 of the Act reads as follows:-
“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”.”
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 In other words, the property should be a residential property.
In the present case, neither of the above conditions of section 22 of the Act stands satisfied. The assessee, as discussed, is not the owner of the property in question. Too, the property is commercial in nature. Therefore, the provisions of section 22 of the Act are not at all applicable. Hence, the addition made as ‘income from house property’ is not sustainable.
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