Landmark Cases on Income from House Property
63 decisions, ranked by how many judgments on BharatTax rely on them.
The municipal ratable value of a property is not binding on the Assessing Officer (AO) for determining the annual value of house property if the AO can demonstrate that the ratable value does not represent the correct fair rent.
The annual value of a property lying vacant is assessed at NIL under Section 23(1)(c) of the Income Tax Act, 1961.
Unsold properties can be assessed for deemed rental income under Section 23(1)(a) based on a reasonable letting value, often calculated as a percentage of the property's cost or value.
Rental income from unsold flats in a construction business is assessable as income from house property, not business income. Consequently, deductions under section 24(a) are allowable.
Income derived from publicity charges for displaying advertisements or hoardings on a building is assessable as income from other sources, not as income from house property.
When an individual partner permits a partnership firm to use his property for business without rent, the annual value cannot be estimated and assessed by the AO if the property is genuinely used for the firm's business, as the High Court upholds the deletion of such assessment.
Compensation received for eviction can be treated as arrears of rent and taxed under the head 'income from house property'. Mesne profits are a species of taxable income.
The annual value of a property that remained vacant for the entire year must be assessed as Nil under Section 23(1)(c) of the Income Tax Act, 1961.
The annual letting value (ALV) of a property for income tax purposes is to be determined on the basis of the municipal valuation, unless the actual rent received is higher. The municipal valuation is not binding on the Assessing Officer if the actual rent is demonstrably higher.
Where a property has not been let out, the Municipal value is the proper yardstick for determining its annual value for income tax purposes.
Income earned from renting out terrace space for mobile antennas is taxable as 'income from house property', not 'income from other sources'. A deduction of 30% of the annual value under section 24(a) is allowable.
