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Income from Letting of Building along with Furniture & Machineries is Assessable as “Other Income”

A division bench of the Delhi High Court in Jay Metal Industries Pvt. Ltd v. CIT held that the income received by the assesse from letting of the building along with the furniture and machineries constitute “composite rent” which is taxable under the head “income from other sources” not under “income from house property” for the purpose of Income Tax Act. 

 Appellant-assessee, in the instant case, let out their building along with all its furniture and machineries. AO held that the same is taxable under the head “income from other sources” against the claim of the Assessee that it is taxable as “income from house property.” On appeal, the first appellate authority allowed the claim of the assesse. However, the ITAT reversed the order by stating that the rental income should be treated as ‘income from other sources’ 

 Article referred: http://www.taxscan.in/income-letting-building-along-furniture-delhi-hc/9459/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+Taxscan+%28Top+Stories+%E2%80%93+Taxscan+%7C+Simplifying+Tax+Laws%29

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