Law:

Section:

Section 22 confines its application not only to house property but also extends it to all buildings whether such buildings are used as dwelling houses or for other purposes Section 22 of the Income-tax Act, 1961 - Income from house property - Chargeable as - Assessment years 1979-80, 1983-84 and 1984-85 - Whether section 22 does not confine its application only to house property but extends it to all buildings whether such buildings are used as dwelling houses or for other purposes - Held, yes - Whether where assessee leased out buildings of whom he was owner and realised income by way of rent, such rental income was liable to be assessed under head 'Income from house property' and not under head 'Income from business' - Held, yes FACTS The assessee owned two buildings and was receiving rental income by letting out those buildings. The Assessing Officer declined to assess that rental income under the head 'Income from business' and assessed the same under the head 'Income from property'. The Commissioner (Appeals) allowed the assessee's appeal. On appeal by the revenue, the Appellate Tribunal confirmed the view of the Commissioner (Appeals) holding that letting out space in the building owned by the assessee was the business of the assessee and, therefore, the income derived from such letting was business income. On reference : HELD It is true that there is a difference in the classification of income between the Income-tax Act, 1922 and the 1961 Act. Section 6 of the 1922 Act classifies income under the heads 'Salaries, Interest on securities, Income from property, Profits and gains from business, Income from other sources and Capital gains'. The 1961 Act, while substantially retaining those heads of income, modified the head 'Income from property' which was the description given in the 1922 Act to 'Income from house property'. However, section 22 of the 1961 Act does not refer to 'house property' despite its caption. The language employed in the section shows that the income referred to therein is not necessarily income from houses. It is income from property 'consisting of any building or lands appurtenant thereto of which the assessee is the owner'. [Para…

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