THE DCIT, RATLAM vs. LATE SMT. SURAJ BAI JAIN THROUGH L/H SHRI SHANTILAL JAIN, MANDSAUR

Facts are in brief that the assessee filed a return of income declaring total income of Rs.27,180/-, agricultural income of Rs.1,13,463/-. The return filed by the assessee was processed u/s 143(1) of the Income Tax Act, 1961 (hereinafter called as ‘the Act’) and subsequently, a notice u/s 148 of the Act was issued after following the due process, the assessment was completed u/s 143(3) r.w.s.

[ CO No.7/Ind/2016] [Late Smt. Suraj Bai Jain, Mandsaur] noted that the assessee has taken a property on lease from M/s. Mahaveer Enterprises and the same is sub-letted to Madhya Pradesh Warehousing & Logistics Corporation and offered the income received out of the above transaction as income from the other sources. However, the A.O. has treated it as income from house property. On appeal, Ld. CIT(A) deleted the addition made by the A.O. on the ground that the assessee is not a owner of the property, therefore, the income received by the assessee cannot be treated as income from house property.

On being aggrieved, revenue carried the matter before the Tribunal. The Ld. Counsel for the assessee has strongly relied on the order passed by the Ld. CIT(A).

Ld. D.R. also strongly relied on the order passed by the A.O.

We have heard the rival submissions, perused the materials available on record and gone through the orders of the authorities below. The only issue involved in this appeal is whether the income received by the assessee from M/s. Mahaveer Enterprises, which is a leased property sub-letted to Madhya Pradesh Warehousing & Logistics Corporation is income from other sources or income from house property? According to the A.O., it is an income from house property and according to the Ld. CIT(A), it is an income from other sources. We have examined the entire facts of the case. In this case, the assessee has taken the property on lease sub-letted to Madhya Pradesh Warehousing & Logistics Corporation and income received offered as income from other sources. From the facts, it is very clear that the assessee is not a owner of the property, which is sub-letted to the Madhya Pradesh Warehousing & Logistics Corporation. Therefore, the income derived from [ CO No.7/Ind/2016] [Late Smt. Suraj Bai Jain, Mandsaur] the property on lease cannot be considered as income from house property. We find that the Ld. CIT(A) has correctly decided that the income received by the assessee is an income from other sources. In view of the above, the appeal filed by the revenue is dismissed.

As far as the Cross objections filed by the assessee is concerned, it is only supportive to the order of the Ld. CIT(A). In view of our decision above, no separate adjudication is required, therefore, the same is dismissed.

In the result, the appeal filed by the revenue as well as C.O. filed by the assessee are dismissed.