Case Law Details
Bimanagar Co. Op. Housing Society Ltd. Vs ITO (ITAT Ahmedabad)- ITAT held that income earned by the assessee, in consideration of having given rights to have play hoardings etc. are taxable as income from house property. Accordingly, deduction under section 24(a) was indeed admissible in the present case.
Full Text of the ITAT Order is as follows:-
1. This appeal, filed by the assessee, is directed against the order dated 5th December 2011, passed by the learned CIT(A), in the matter of assessment under section 143(3) of the Income Tax Act, 1961, for the assessment year 2008-09.
2. Grievances raised by the appellant are as follows :
1. The Ld. CIT (A) has erred in both in law and on facts in confirming the action of the Id AO disallowing the claim of Rs.480000/- as against legitimate claim of deduction Under Section 24 (a) of the Income Tax Act and assess the Income as ‘Income from other Sources‘ as against the ‘”Income form House Property’ as per Return of income filed by the Assessee. The Id CIT(A) failed to appreciate that renting out land appurtenant to the buildings owned by the Society for the purpose of erecting hoardings shall be in the nature of the ‘Income from House Property‘ and not as ‘Income from Other Sources’.
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