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Income Tax Query I

Shefali Bajpai (Article Assitant & CA Final Student) (1148 Points)

28 December 2008

A Ltd. firm had let out the house property owned by it to the employees of its sister concern, B Ltd. Under what head of income should the income from the house property of income from the house property of A Ltd., occupied by the employees of its sister concern B Ltd., be assessed? Can A ltd., claim that such income is not chargeable under the head “Income from House Property”, on the ground that the property has been occupied for the purpose of its business or profession?

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5 Replies

CA. Rajeev Aggarwal (Chartered Accountant) (3424 Points)
Replied 28 December 2008

I think, ur suggestion is correct.

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payal gupta (ca final student) (482 Points)
Replied 28 December 2008

This income is income under the head house property because the letting of property is not the business of Mr.A so,Mr.A can't claim that it is not chargeable under the head house property.

PiyushAgrawal (Chartered acooutant in practice) (575 Points)
Replied 29 December 2008

it is treated as House property income.

Shudhanshu Agrawal (Business) (2570 Points)
Replied 29 December 2008

It willbe charged as Income from House Property.....

somya (ca ) (172 Points)
Replied 29 December 2008

it will be assessed as the income from house property cuz A ltd has not let out the house property to its own employees and according to income tax if the assessee uses the house property for its own business then only it can claim that income under the head B&P.