COMMISSIONER OF INCOME TAX Vs. P ANDAL AMMAL

JUDGEMENT

(1.) THE common question of law that expects our answer in the above batch of tax cases in short is whether the income derived by the assessee by way of rent in respect of the lodging house is assessable under the head "Income from house property" or under the head "Income from other sources".

(2.) AS the question involves an interpretation of the provisions of Section 56(2)(iii) of the Income-tax Act, 1961 (for short, "the Act"), the provisions of the section, in so far as it is relevant for the purpose of the case, are reproduced as under :

(3.) WE have seen that the Tribunal took into consideration the construction, structure of the building and other related aspects of the building to come to the conclusion that both the lettings were a single and indivisible transaction. The Tribunal has also recorded a plausible reason for entering into two separate agreements, the reason being the apprehension of the assessee that he may have to shoulder higher burden of property tax to be imposed on the building by the Corporation of Chennai if the transaction was reduced in a single document. Though the assessee had entered into two separate agreements, one for building and another for furniture and other amenities, we are of the opinion that the letting of furniture and building was a single indivisible transaction. WE are of the opinion that so long as that finding of the Tribunal remains, the conclusion of the Appellate Tribunal that the income should be assessed under the head "Income from other sources" is sustainable on the facts of the case.