CIT v Smt. P.K. Kochammu Amma

(1980) 125 Income Tax Reports 624 (SC)Supreme Court of India1980Professional Ethics and Professional Accounting System, Law of Taxation

Rule established

Income from letting out of property is taxable under the head 'Income from House Property' if the property is used for letting; the nature of the asset determines the head of income.

Facts

The assessee earned rental income from letting out property. The dispute was whether the income should be assessed under "Income from House Property" or "Income from Other Sources" based on the nature of the activity.

Issue

Under which head of income should rental income from letting out property be assessed: Income from House Property or Profits and Gains of Business?

Held

The Supreme Court held that where the assessee is the owner of a property and lets it out, the income is assessable under the head "Income from House Property" under S.22. The nature of the asset (house property owned by the assessee) determines the head, not the nature of the activity.

Ratio Decidendi

The Supreme Court held that where the assessee is the owner of a property and lets it out, the income is assessable under the head "Income from House Property" under S.22. The nature of the asset (house property owned by the assessee) determines the head, not the nature of the activity.

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Source

Source: (1980) 125 Income Tax Reports 624 (SC)

This is an educational summary, not the judgment itself. Cite the reported version in professional or academic work.