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Rent received by AOP only letting out property is taxable as ‘Income from House Property’

While hearing the case between Manek Lodge Properties vs. Additional Commissioner of Income Tax, Mumbai bench of Income Tax Appellate Tribunal (ITAT) recently held that rent received by an association of co-owners with only an objective to derive income from letting out of property is taxable under the head Income from House Property. 

Assessee in the instant case being a resident association of person filed its return of income for the relevant assessment year and declared a total income at Rs. 92.48 lakhs. 


During the course of assessment proceedings the Assessing Officer (AO) noticed that Assessee was an Association of Persons (AOP) consists of 18 members who were co-owners of a property named as Manek Lodge Properties and the Assessee earned rental income from the said property and the same was offered under the head income from house property by the AO while completing the assessment.

Read more at: http://www.taxscan.in/rent-association-co-owners-derive-income-letting-property-taxable-income-house-property-itat/18510/

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